The number of property listings surged for the fourth straight week as vendors took advantage of the renewed interest among first homebuyers, a new report from RP Data has revealed.
RP Data senior research analyst Cameron Kusher said combined new listings for houses and units during the week of 16 October jumped by a whopping 2,008 compared to the previous week, to 13,766.
Kusher said continued interest rate cuts and the recent first home Owner Grant boost have contributed to the 17% national increase.
"This rise is quite a lot compared to the usual weekly increases of 500 properties or so. The doubling and tripling of the First Home Owner Grant and the 100 basis point interest rate cut by the RBA has encouraged a lot of vendors to try their luck selling their property for the first time, where they may have held off before," Kusher explained.
"The increased property listings mean a lot of competition between vendors. Because there are still not a lot of buyers out there, investors might be able to play vendors off against each other and get the best possible price."
Kusher said experienced investors should target affluent coastal areas, where the global share market turmoil is beginning to affect high net worth individuals with holiday homes, and retirees.
"There is an abundance of ocean-front listings in areas such as Port Macquarie, Terrigal, Nelson's Bay and Banora Point in NSW. Similarly in Queensland this is happening in areas such as Noosaville, Buderim and Surfers Paradise," explained Kusher.
"So, for investors in a good position they may be able to snap up a bargain if they're prepared to negotiate and not deviate too much from their price range."
Kusher said busy development hubs in the outer-lying areas of capital cities, such as Newcastle in NSW, have also shown increased listings and promising signs for the future.
In Victoria he recommends the western regions of Melbourne such as Frankston, Werribee and Burwood where listings are high and transport infrastructure is strong.
In South Australia, his picks are areas such as Morsel Lakes and Mount Barker.
"Inner city areas such as the suburbs of Darwin and Melbourne, and even Dee Why and Cronulla in Sydney, are good places to look for a bargain now," Kusher said.
"Buderim and Upper Coomera in Queensland as well as Mandurah and Rockingham in WA are the same. The high listings in these outer-lying areas are indicative of those first and second homeowners who have overcommitted and have and to sell," explained Kusher.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan