Karen Dellow (pictured above), senior audience data analyst at REA Group, emphasised the significant role of buyer and seller confidence in shaping the real estate landscape.
Sentiment directly affects not only the number of property listings and completed transactions but also influences the direction of property prices.
Recent findings from the realestate.com.au Residential Audience Pulse Survey revealed mixed feelings among sellers, with notable differences across states.
While some reservations persist in NSW and Victoria due to modest price growth, Tasmanian sellers are becoming increasingly optimistic.
In October, the proportion of Tasmanian sellers who felt it was a good time to sell rose by 15%, reflecting unique market conditions that contrast with the general slowdown observed elsewhere.
Despite varying levels of confidence across regions, the spring selling season of 2024 surpassed the activity of the previous year, PropTrack reported.
This indicates a resilient market where both buyers and sellers remain engaged, even as confidence levels fluctuate.
While immediate expectations for price increases have waned since earlier in the year, the strong performance in places like Western Australia – where property prices have risen by 17.6% – illustrates continued market strength.
On the buyer’s side, sentiment has held steady, with about a third of respondents across Australia feeling positive about purchasing opportunities.
This sentiment is particularly robust in Victoria, where 40% of buyers believe now is a good time to buy, thanks to stable price growth.
South Australia and Queensland also saw a rise in buyer optimism, driven by affordable prices and attractive regional relocation opportunities.
Interest rate expectations are critical in shaping market sentiment.
A growing majority of both buyers and sellers anticipate stable or declining interest rates, with only a small percentage bracing for increases, PropTrack reported.
This shift is reducing anxiety around borrowing costs and is mirrored by a decrease in concerns over potential rate hikes.
As 2025 approaches, the overall market sentiment is shaping up to be cautiously optimistic.
Regions like Tasmania and Western Australia demonstrate strong market resilience, which, coupled with moderated concerns over interest rates, suggests a favorable outlook for the housing market in the upcoming year.
Although overall consumer sentiment has seen a slight decline, ongoing price growth is expected throughout 2025, according to PropTrack forecasts.
In summary, while some areas face challenges, the enduring positivity in other regions and the overall decrease in interest rate concerns provide a stable foundation for continued market activity and transaction engagement in 2025.
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