Spring is typically the busiest time of year for the property market, with listings multiplying and house hunters out in force… but how will this year play out?
This year it will be the first spring for three years when our property markets have not been impacted by lockdowns or restrictions of some sort, which made it more difficult for buyers, sellers, and agents alike.
Experts say this selling season might look a little different. Spring will likely see more homes on the market in line with seasonal trends, but fewer buyers due to the spectre of interest rate hikes There is more uncertainty (from buyers) around where borrowing costs are going to be and how much borrowing capacities are going to be constrained.
The number of potential buyers browsing listings on realestate.com.au has moderated from last year’s extremely elevated levels.
Buyers likely to see ideal conditions
As a result of the weaker consumer sentiment, home prices have started to slip from their historic highs. According to PropTrack’s Home Price Index, prices are down by 1.66% nationally from their peak in March. The extraordinary growth that we saw in home prices over the last two years certainly couldn’t continue. With sellers pre-empting further price drops and homes taking longer to sell, the number of listings will get a boost in the coming months. This will give those in the market for a home more choice.
Signs confidence is rebounding
A multitude of factors have made buyers skittish in recent months, including the federal election, uncertainty about future interest rate hikes, and overstated predictions of “doom and gloom” for the property market. We are optimistic that the warmer months ahead will generate more listings, more homebuyer activity, and plenty of opportunities for buyers and sellers alike.
Spring traditionally brings more stock to the market as sellers tend to want to present their homes if they have gardens when they are in full bloom and the sun is shining. We will naturally see this again. We also think the market is opportunistic for buyers because they don’t have as much competition.
Good property is still selling well – Many buyers are searching for a “walk-in-and-put-the-kettle-on” property and paying for this.
Buyer conversations have changed a lot. Fear of missing out used to be a big driver, and at the moment fear of overpaying seems to be a lot stronger. It’s like we’re going through a period of grieving, and we’re almost at the acceptance stage. This is the new reality, and buyers are starting to adjust, sellers are starting to adjust.
We’re pretty optimistic internally in our office, we anticipate a lot of buyer activity.