26th September 2019 / Sarah Lowry: Spring Market Update – More Properties, More Buyers

As the Spring selling season begins, we are thrilled to see an increase in properties coming onto the market, alongside a comparable increase in the number of interested and qualified buyers.

Research by Domain economist, Trent Wiltshire, indicated that the relatively high clearance rates in the two months prior to Spring are most likely an early sign of market turnaround. He notes that most commentary suggests that rising prices and higher clearance rates have been boosted by the low number of auctions but that historically, this has not been the case.

"Regardless of the number of auctions being held, clearance rates are still a timely and pretty accurate indicator of market conditions" he said. Economists, including Mr Wiltshire, have also predicted a third interest rate cut by the Reserve Bank of Australia before the end of the year.

Domain data from the June 2019 quarter also showed a slight jump in house price medians, for the first time since the peak at the end of 2017.

Feedback from our auctioneers and agents have echoed the positive sentiment, reporting that buyers are no longer holding back to place their bids, and often jumping in to spark further bidding once a home is announced 'on the market'. Young families in particular are also coming back to buy, after regaining the confidence to put their hands up to bid. REIV President, Robyn Waters, notes that "the interest rate cuts and APRA's advice to relax lending standards are among the factors that have cultivated an environment conducive to upsizing".

After a relatively slow start to 2019, we now have the result of the Federal election well and truly settled, as well as two interest rate cuts already this year. We expect a robust and competitive Spring selling season, and hope that we can assist you with any of your selling, buying or investment needs!