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Australians are increasingly becoming interested in selling their homes but they are not eager to list their property straight away, according to the latest study by Westpac.
Around a third of homeowners are eyeing to sell their homes in the next five years, though more than half of them are actively holding off from listing their property immediately.
In fact, just one in 10 homeowners who are planning to sell are already in the process of putting their house on the market in the next 12 months.
Still, the level of selling intentions among Australian homeowners have increased by more than double compared to the level seen prior to the COVID-19 pandemic.
Anthony Hughes, managing director of mortgages at Westpac, said homeownership preferences have changed, encouraging more owners to sell their properties and look for another that suits their needs better.
According to the study, one in five homeowners are selling for reasons directly relating to the pandemic. A further one in ten said they are looking for a dwelling that can accommodate working from home more while a quarter are also seeking more space.
"Homeownership preferences have evolved since the start of the pandemic, with Australians seeking more space, peace and quiet, as well as properties which offer outdoor living like backyards and balconies," he said.
Hughes said other factors such as the low interest rate environment, upbeat consumer sentiment, and improving economic outlook were supporting the stronger seller sentiment this year.
Matt Hassan, senior economist at Westpac, said the current conditions reflect a seller's market.
"Sales have seen a big lift over the last four months and are up over 36% a year ago, resulting in a significant tightening in supply with listings across the major capital cities now at a 12-year low," he said.
However, Hassan believes that the situation will find its balance again in the coming months as more sellers enter the market.
"Demand is still expected to remain strong, driving a sustained lift in prices this year and next,” he said.
