Long open home queues a warning for buyers ahead of summer auctions

Lines of home seekers have been snaking down the street at Sydney open homes in another sign the housing market is turning red hot again.

Agents reported more than 100 buyer groups arrived at some inspections over the weekend, with some having to queue for more than 30 minutes for a chance to view homes.

It comes as real estate data showed there has been a surge of buyer inquiries at a time of low listing numbers.

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And with low interest rates expected to drive more buyers into the market, this has left home seekers far outnumbering listings and competition has reached a fever pitch.

My Housing Market economist Andrew Wilson said it was clear the market had “moved up a step” from this time last year – which was a strong market.

“Auction clearance rates are pointing to a very strong market,” he said.

McGrath-Coogee agent Nick Wise said attendance at open homes was “incredible” over the past two weeks.

“People understand it’s going to be a strong year for real estate. They want to get in early,” Mr Wise said.

Open home numbers have been particularly high in Sydney’s inner west, with nearly 300 people swarming into two open homes in the suburb of Earlwood on Saturday.

Ray White auctioneer Alex Pattaro said these kinds of numbers hadn’t been seen in the area in close to 20 years.

“Usually we’d get 20, maybe 30 coming to an open,” he said.

Mr Pattaro attributed the high buyer numbers to pent up demand from buyers who held off property searches last year.

“There was uncertainty about the market last year but that’s gone away and people are ready to buy. There’s very limited stock, few quality homes are on the market,” he said.

Adrian William director Adrian Tsavalas said many of the house hunters intending open homes were “new year’s resolution buyers”.

“This happens every year, but it’s a little earlier this year because not many people are going on holidays,” Mr Tsavalas said.

“Couples have conversations and they decide this is the year they are finally going to buy so they start looking.”

The more aggressive buyers were usually those who had missed out on properties late last year, he added.

“We had some really strong sales at the end of 2020 and all that energy from buyers is back … some are actually increasing their budgets now.”

Mr Tsavalas said he showed 50-80 groups of buyers through his open homes last weekend. “Usually the average you’d get in a normal market would be 20-30,” he said.

Agents have to follow strict COVID-19 guidelines when showing interested buyers through homes. This includes adhering to the NSW government’s one person per four sqm rule.

These limitations have increased the amount of time home seekers have to wait outside open homes, with agents only letting in five to 10 people into a home at a time.

“The restrictions have made the process take longer but there are also just more buyers out there and that’s why we’re getting the long lines,” Mr Tsavalas said.