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 can you anticipate in this year’s spring selling period? Here’s what prospective buyers should keep in mind.
More Properties on the Market
With the arrival of spring, you’re likely to notice a surge in listings on platforms like realestate.com.au and domain.com.au, though this can vary by location.
According to CoreLogic, over the past decade, new listings have typically increased by an average of 18.2% from winter to spring, with sales rising by an average of 8.3%.
However, be aware that in certain cities, sales volumes have actually dipped during previous spring seasons due to market dynamics. For instance, in Sydney and Melbourne during springs in 2015, 2017, and 2018, temporary macroprudential measures led to a significant drop in investor demand.
This spring, high interest rates, a slowing economy, and diminishing consumer sentiment may impact demand. Concerns about the cost of living and inflation might also keep the traditionally bustling spring selling season a bit more tempered in 2024.
Regional Variations in Selling Conditions
The balance of supply and demand across Australia’s capital cities is currently quite varied, which means some areas may experience stronger performance than others this spring.
In Melbourne, for example, there have been 5,400 more new listings in the last three months compared to the number of sales. If you’re looking to buy in Victoria’s capital this season, you might find favourable conditions.
Conversely, Adelaide and Perth have seen sales outpacing the influx of new listings.
In these markets, sellers could have the advantage this spring. This may also apply to some of Brisbane’s more affordable suburbs, like Beaudesert, according to CoreLogic.
As a potential buyer, it’s essential to conduct thorough research on local market trends to make well-informed offers.
Interest Rates Likely to Remain Steady
In its latest meeting, the Reserve Bank of Australia (RBA) did not increase the cash rate. However, RBA Governor Michele Bullock indicated that a rate cut is not on the horizon for the immediate future. Most experts believe we won’t see a reduction until 2025.
Currently, the cash rate stands at 4.35%, with the average home loan interest rate at 6.28% per annum for owner-occupiers. Notably, 98.2% of new home loans are variable, while only 1.8% are fixed, suggesting that buyers are cautious and preparing for potential rate changes.
If the RBA eventually lowers the cash rate, property prices may rise again due to increased demand. For some buyers, entering the market sooner rather than waiting for a rate cut could be advantageous.
While many buyers are taking a ‘wait and see’ approach, it’s crucial to have your finances organised in case you find your ideal property.
Contact your 1st Street Mortgage Broker to discuss getting pre-approved so you’re ready to act when the right opportunity arises. Reach out to us today!
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