As we head into Spring, which tends to be seen as the start of the six month “selling season” which, on the coast, corresponds with the warm six months of the calendar, I thought it would be good to provide a market update. This will be handy for those who are getting ready to sell or have been trying to understand what is happening so they can make some final decisions around their property needs.
It has become increasingly clear that the federal election in May can be viewed as the bottom of this cycle for Australia’s main property markets, Melbourne and Sydney. Most other regional property markets act as a reflection of these two large metropolitan markets and the coastal market is no exception. We have seen positive signs that confidence is returning through increased levels of buyer inquiry and a lift in metropolitan auction clearance rates since the election. These have been supported by a cut in interest rates and some flexibility with lending criteria being allowed by APRA for lenders.
Property market participants have their preferences and their needs. When markets soften, their preference is to sit on their hands and take a wait and see attitude. At some point their needs overtake their preferences and they take action and that is what we are seeing now. The certainty of no change in government, interest rate trends and a stable economy are all assisting them in making a decision to act.
Next month will also signify two years since the last peak of the metropolitan markets of Melbourne and Sydney in September 2017. People who want to make a property move at some point will just want to get on with it and given everyone does what everyone else does, we expect Spring and Summer will see heightened levels of activity.
Price movements are just too hard to predict. All we are comfortable advising is that the platform for increased activity in the property market is set in place and that it looks much more positive than it did pre-election. We know that buyer inquiry has considerably lifted and that is always the first step. Properties for sale however remain very low and this could be a considerable advantage for those considering selling this season.
If we can be of any assistance in any real estate matter, please do not hesitate to call