Homebuyers will be in the hot seat in some cities this spring, as fresh home listings hit the market at pace across the country with the change of the season.
Nationally, new home listings were 12% higher in July compared to the same time last year, according to the latest PropTrack data.
However, leading real estate experts from around the country predict more buyers will also be on the hunt for a home this season.
Home hunters are feeling the pressure to get into the market, as property prices and rents continue to rise, albeit at a slowing pace, while higher living costs to make saving for a deposit even more difficult for many.
PropTrack senior economist Eleanor Creagh said an uplift in real estate activity across all capital cities was likely this spring.
“We know that new listings have been higher in every capital city market over the past year,” Ms Creagh said.
New home listings were 12% higher across Australia in July compared to the same time last year. Picture: Getty
“A relatively busy spring selling season is on the cards, so there will probably be even more choice for buyers as the spring selling season unfolds, although there's going to be more buyers active in the market too.”
We asked property experts on the ground in various cities for their views on where the market is heading over the next three months.
Jump to see spring selling property predictions in:
Sydney property predictions
Sydney is set to see a “healthy” number of new listings come to market this spring, BresicWhitney chief executive Thomas McGlynn told realestate.com.au.
The latest PropTrack figures showed new sale listings in Sydney were 12.3% higher year-on-year (YoY) in July, and total sale listings were up 17.4%.
“The one thing that’s going to be slightly different this spring is the total listing volume might start to grow as clearance rates aren't as strong, and we've got more property staying on the market for longer,” Mr McGlynn said.
“Total listing volumes will remain quite high and I think that will certainly be a trend this spring.”
Mr McGlynn said there were still plenty of buyers in the market, regardless of the slowing economic conditions and cost-of-living pressures.
BresicWhitney chief executive Thomas McGlynn said there were plenty of buyers in the Sydney market. Picture: Supplied
Demand from buyers continues to drive home price growth, with Sydney house prices increasing 6.77% YoY to $1.429 million in July. Unit prices have increased 3.89% to $830,000 over the same period.
“However, it certainly does feel that buyers are being a little bit pickier when it comes to property, and they're not willing to push themselves over what could be perceived as being fair market value," Mr McGlynn said.
"I do believe that sellers are wanting to sell this spring and they're most likely going to have to adjust their expectations slightly.”
Melbourne property predictions
Melbourne real estate listings have grown even more than Sydney, yet Jellis Craig chief executive Andrew McCann expects a balanced spring market nonetheless.
In Melbourne, the number of new listings was 14.6% higher YoY in July, and total listings were up 21.7%.
"We think there will be a healthy volume of property available for spring, and we think it’s going to be fairly well satisfied by pent-up demand," Mr McCann said.
The group has seen promising buyer activity, having recorded a group-wide clearance rate of almost 80% from a recent weekend of more than 100 auctions.
Jellis Craig chief executive Andrew McCann said Melbourne home sellers can still get fair prices.
“It gives us confidence that buyer activity is healthy and that people are looking to get on with acquiring their dream home through this next selling period,” he said.
“There's a good pool of active buyers who have accepted that we're probably at the top of the interest rate cycle, and renting isn't getting cheaper, so we're certainly seeing people actively looking to buy.
“It's not a market that's going to see huge capital gains, but it's a market where you will get a fair price if you're prepared to put your property into the market.”
House prices in Melbourne fell by 1.01% YoY to $912,000 in July, while unit prices increased by 0.18% to $619,000 over the same period.
This Melbourne house at 48-50 Greville Street, Prahran has an indicative price guide of $7.6-$8.36 million. Picture: Realestate.com.au/buy
Brisbane property predictions
Brisbane remains one of the hottest real estate markets in Australia, and the city is expected to see more homes hit the market this spring.
“We had a 20% uplift in appraisals through August and that's usually the first step when they're thinking of selling,” Place Estate Agents managing director Sarah Hackett said.
“We're noticing that that stock is converting to listings, so we feel like there's going to be more stock on the market for buyers to choose from in spring.”
In Brisbane, new listings were 16.1% higher YoY in July, yet total listings were up just 0.2%.
Place Estate Agents managing director Sarah Hackett said home listings are set to rise in Brisbane this spring. Picture supplied.
Brisbane house prices increased by 13.42% YoY to $951,000 in July, while unit prices increased by 16.85% to $663,000.
“We're certainly seeing momentum,” Ms Hackett said.
“We are noticing less offers or bidders per property, but clearance rates are still about 82% at Place, so it's a combination of sellers agreeing to the market and then finding a buyer that loves the property.”
Ms Hackett said while market conditions were positive, sellers would need to price their properties correctly this spring in the face of rising new listings.
This Brisbane house at 79 Duke Street, Toowong is asking for offers over $5.85 million. Picture: Realestate.com.au/buy
Adelaide property predictions
Adelaide homebuyers will start to see more homes hit the market this spring, according to Ms Creagh from PropTrack.
“In Adelaide, listings have been quite constrained for a period of time, but we have just started to see the number of new listings hitting the market increase, which is good news for buyers,” Ms Creagh said.
New listings in Adelaide were 17.4% higher YoY in July, although total listings were still down 6.9%, reflecting the limited number of homes for sale in the city.
PropTrack senior economist Eleanor Creagh said this spring was likely to see an uplift in real estate activity across all of the capital cities.
“It's going to offer a bit more choice for buyers in the Adelaide market,” she said.
“Given that we've already seen new listings increasing and the spring selling season is fast approaching, it’s likely to bring even more choice for buyers in Adelaide.”
House prices in Adelaide increased by 15.09% YoY to $819,000 million in July, while unit prices increased by 12.44% to $599,000.
This Adelaide house at 3 Victoria Avenue, Unley Park is seeking expressions of interest until September 5. Picture: Realestate.com.au/buy
Perth property predictions
Perth's real estate market is expected to remain extremely tight despite an influx of new listings hitting the market, according to Duet Property Group founder and director Michelle Kerr.
“Supply levels in Perth have been extremely low the last 24 months and show no signs of improving,” Ms Kerr said.
“We will get the normal increase in stock that spring brings but certainly not enough to meet demand.”
In Perth, new listings were 15.3% higher YoY in July, but total listings were still 20.2% lower than at the same time last year.
Duet Property Group director Michelle Kerr said spring will bring some new listings to Perth but not enough to meet demand. Picture: Supplied.
In the past year house prices in Perth increased by 23.19% to $790,000 in July, while unit prices increased by 19.13% to $530,000.
Ms Kerr said demand remained high across all price brackets due to the supply demand imbalance in the city.
“High population growth and lack of quality rentals add to our already strained property market,” she said.
“Demand traditionally picks up in spring as people become more active in the warmer weather and this year should be no different.”
Hobart property predictions
Hobart remains one of the most buyer-friendly capital city property markets, with high listing numbers and home price declines.
“There's more choice for buyers in the Hobart market,” Ms Creagh said.
“We've continued to see that buyer demand isn't quite matching the number of properties listed for sale, so we're continuing to see relatively weak selling conditions in Hobart.”
In Hobart, new listings were 5.5% higher YoY in July, and total listings were up 14.4%.
House prices in Hobart have fallen by 2.4% YoY to $717,000 in July, while unit prices have decreased 0.9% to $552,000 over the same period.
Darwin property predictions
Darwin’s property market could see an increase in sale activity over the next three months, Ms Creagh said.
“We've seen a big sales uplift in Darwin over the past year, looking at July compared to the same time last year,” she said.
"So clearly activity is picking up into the spring selling season.
“We've also seen an uplift in new listings hitting the market in July, but over the past year, the total number of properties listed for sale has fallen.”
New listings in Darwin were 12% higher YoY in July, while total listings were 2.4% lower.
It comes as house prices in Darwin increased 3.54% YoY to $560,000 in July, while unit prices fell 2.76% to $382,000.
Canberra property predictions
Canberra is set to offer homebuyers more choice this spring as well, Ms Creagh said.
“Canberra is the capital city market with the largest uplift in total properties listed for sale over the past year,” she said.
This Canberra home at 20 McHugh Street, Evatt heads to auction on September 14. Picture: Realestate.com.au/buy
In Canberra, total listings were 33.7% higher YoY in July, while new listings were up 16.2%.
“It’s also been one of the markets that has seen weaker price performance throughout the past year," Ms Creagh said.
House prices in the ACT have increased 0.94% YoY to $980,000 in July, while unit prices have declined 0.32% to $607,000.
English (US) · 