According to real estate agencies, the increase in property listings is being eagerly met by home buyers, particularly in smaller capitals facing a significant supply shortage.
PropTrack data revealed a 6.2% rise in home prices over the last year, despite rising interest rates, with economists predicting more growth into 2024, as expected rate cuts boost confidence and enable larger loans.
Eleanor Creagh (pictured above), PropTrack’s senior economist, noted that anticipated interest rate cuts are likely boosting market activity, realestate.com.au reported.
“Housing demand is also being buoyed by factors like population growth, tight rental markets, resilient labour market conditions, and recent home equity gains,” Creagh said.
Agents indicated an unusually active autumn due to returning homebuyer FOMO – the fear of missing out – nationwide.
PropTrack reported a normalisation in supply with a surge of new Sydney properties, boosting seller confidence.
BresicWhitney CEO Thomas McGlynn anticipated high listings through the season.
“The rapidly rising interest rate environment is starting to have a slight effect on affordability,” McGlynn told realestate.com.au.
He predicted market unpredictability but identified growth opportunities in Sydney, especially for families and apartment buyers in the lower north shore and inner west, respectively.
PropTrack data showed a 0.55% increase in Sydney home prices in February, reaching $1.053 million, a 7.77% year-on-year rise.
Melbourne’s real estate market saw a surge in listings, with a 35.4% increase in new listings and a 21.5% rise in total listings in February, PropTrack reported.
Dean O’Brien of O’Brien Real Estate commented on the growing options for buyers.
“I’ve noticed a greater volume of properties coming onto the market as we have moved through te summer and into the autumn,” O’Brien told realestate.com.au. “It’s a very positive time for the real estate market.”
He attributed the rise in listings partly to state land tax increases, prompting landlords to sell, thus expanding choices for those looking to upgrade or downsize.
Melbourne home prices rose 0.28% to $797,000 in February, marking a 1.33% increase from the previous year.
Brisbane’s market, boosted by interstate migration and 2032 Olympics anticipation, remains strong.
Jon Iceton, of Belle Property, highlighted the southern corridor’s demand, especially Annerley to Yeronga, but noted, “Tarragindi would probably be my pick... it’s close to the city... and it’s probably the most undervalued suburb.”
Despite lower listings, more properties are expected this autumn, maintaining a seller’s market. Brisbane home prices climbed 0.54% to $797,000 in February, up 12.16% from last year.
Adelaide’s rising home prices have favoured sellers, but the upcoming autumn might offer buyers more options.
Bronte Manuel, of Toop and Toop Real Estate, observed increasing FOMO.
“We’re in a low stock market here...” Manuel told realestate.com.au. “It feels like the market has just kicked again.”
He anticipates a surge in listings post-Easter, expecting “April and May will be really big months.” Despite this, the market remains seller-oriented, with PropTrack reporting a 0.81% price increase to $709,000 in February, a 12.76% annual rise.
“From a supply and demand perspective... it’s not going to get better anytime soon,” Manuel said, expecting a 10%-15% price increase in 2024.
Perth’s real estate market, already experiencing significant home price growth, is set to continue its rise. PropTrack reported a 0.56% increase to $651,000 in February, marking a 16.3% annual growth.
Sean Hughes, of Realmark Coastal, highlighted the attention from buyers and investors.
“We’re expecting to see extremely strong growth in Perth...” Hughes said. “We are grossly undersupplied at the moment,” with current listings at 3,900 homes compared to the 12,000 of a balanced market.
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