Demand remains strong, thanks to solid population growth fueled by immigration and ever-increasing pent-up demand. The time properties spend on the market remains well below the five-year average.

But listings also remain strong, giving buyers choice. Wilson says the percentage of listings was particularly high in Sydney and Melbourne in the second half of calendar year 2023, but even if listings remained flat in the final months of 2024, that would be a good result.

REA’s trading update, released alongside its FY2024 results on Friday, showed national residential property listings were up 12 per cent year-on-year, with Sydney up 12 per cent and Melbourne up 15 per cent.

A little more weakness in the market wouldn’t be bad for REA, as it would likely lead to more supply. But Wilson sees little reason for demand to slow, especially when rate cuts add to the tailwinds of population growth and ever-present pent-up demand.

REA’s results were well received on Friday, with shares up nearly 7 percent, although net profit was just below market expectations due to higher costs that will remain high in 2025.

Wilson is one of the quietest and most consistent performers in the market: every year he and his team work to improve engagement and lead quality for brokers and their vendors, and every year REA pushes through price increases that the market readily accepts.

If there’s one question about this stock, it’s how much it’s loved by investors. REA trades at a price-to-earnings ratio of 55, while you can buy Microsoft at 30x and Nvidia at 40x.