Spring has arrived, bringing a renewed sense of excitement in the property market.
Whether you’re an agent looking to sell a few properties, a vendor wanting to offload a property, or a buyer hoping to snap up a bargain and start a new chapter in a new home, there’s no doubt there’s a buzz in the air.
So, what’s ahead for this year’s spring selling season? As a prospective buyer, here’s what you can expect.
Likely more properties to choose from
With spring having arrived, you’ll likely start seeing a lot more listings becoming available on websites like realestate.com.au or domain.com.au – but it will depend on where you are.
According to CoreLogic, the average uplift in new listings between winter and spring has been 18.2% over the past decade. Meanwhile, the average uplift in sales has been 8.3%.
As the table below shows, Australia’s southern capitals appear to have the highest increase in springtime listings.
| Uplift in sales | Uplift in new listings | |||
|---|---|---|---|---|
| Sydney | 10.4% | 20.3% | ||
| Melbourne | 10.5% | 26.7% | ||
| Brisbane | 7.6% | 10.6% | ||
| Adelaide | -0.1% | 26.8% | ||
| Perth | 6.2% | 16.5% | ||
| Hobart | 12.3% | 27.9% | ||
| Darwin | 5.1% | -1.9% | ||
| ACT | 14.6% | 34.7% | ||
| Combined capitals | 8.7% | 20.2% | ||
| Australia-wide | 8.3% | 18.2% |
Source: https://www.corelogic.com.au/news-research/news/2024/whats-in-store-for-the-spring-selling-season
Keep in mind that in some cities, sales volumes have actually decreased during past spring seasons due to market conditions. Examples include Sydney and Melbourne in the spring of 2015, 2017 and 2018, when temporary macroprudential rules caused investor demand to plummet.
This spring, high interest rates, slowing economic conditions and reduced consumer sentiment could affect demand. There’s also a fair bit of uncertainty in the air about the cost of living and inflation, which could keep the traditionally busy spring selling season a bit more subdued in 2024.
Varied selling conditions from region to region
Supply and demand across Australia’s capitals is pretty varied at the moment, which means some areas may perform better than others this spring.
In Melbourne, for example, there were 5,400 more new listings added to the market in the past three months than sales taking place. If you’re looking to buy in Victoria’s capital this spring, conditions may favour you.
Adelaide and Perth, on the other hand, saw sales outpace the number of new listings added. In these markets, sellers may have the upper hand this spring. This may also be the case in some of the more affordable markets of Brisbane such as Beaudesert, according to CoreLogic.
If you’re a prospective buyer, make sure you do plenty of research to see how the local market has been performing, so that you’re able to make an informed bid or offer.
Interest rates will likely stay the same
At its last meeting, the Reserve Bank of Australia (RBA) spared Aussie borrowers a cash rate rise. However, RBA governor Michele Bullock warned a rate cut was ‘not on the agenda’ in the near term. Most people expect we won’t see a cash rate cut until 2025.
The cash rate is currently sitting at 4.35% and the average home loan interest rate is 6.28% p.a. (owner occupier). Interestingly, 98.2% of new home loans are variable, while only 1.8% are fixed. It seems buyers are hedging their bets, in case the RBA does decide to cut the cash rate.
Keep in mind that if the RBA lowers the cash rate, property prices may well rise again in line with greater demand. For some buyers, it may be worth getting into the market sooner rather than waiting for a cash rate cut.
Ready to explore your finance options?
While many buyers are adopting a ‘wait and see’ attitude, it’s important to have your finance in order in case you do come across your dream property.
Talk to us about getting pre-approved and be ready to purchase when the right property comes along. Get in touch today.