The number of people looking to buy on realestate.com.au has increased by 8 per cent.
The index provides data and insights about residential dwellings across Australia which have been recorded by website realestate.com.au.
Nerida Conisbee, REA's Group Chief Economist said:
“Demand for property in Australia is now at fever pitch, with rates continuing to reach record levels, further supporting house price growth in all states except Western Australia."
The index indicates the number of people looking to buy on realestate.com.au increased nationally by 8.2 per cent last month.
“From what we’re seeing on realestate.com.au in October, the increases in the index have been driven by more people looking to buy, despite a marginal seasonal increase in active listings on realestate.com.au over the month of October," Conisbee said.
"However, we’re still seeing overall listings on the site remain lower than the same time last year," she added.
“Increased demand will continue to be a challenge in affordability, particularly in New South Wales and Victoria, where we are seeing the strongest levels of demand and the highest median prices."
The national demand for apartments hasn't slowed , with the only state to experience a drop in demand being Western Australia.
“Apartment demand also continues to be high, driven by the number of people looking to buy outpacing the number of listings, which is somewhat surprising given the level of new apartment development across Australia,” Conisbee said.
The REA Group Property Demand Index is produced by the REA Group, owner and operator of realestate.com.au – the leading source in Australia for residential property with a total average unique audience of more than 5.9 million (Nielsen Digital Ratings (Monthly), April-September 2016).