‘Peak time for activity’: What can we expect in Canberra's property market this spring?

Blossoms are blooming again in Canberra, and as the sun is causing the weather to warm up, it will likely have the same effect on the property market. 

The past few months in Canberra saw less bidders at auctions and dormant gardens in homes for sale as flowers and potential buyers hid from the cold, a seasonal trend in Canberra’s real estate market. 

At only 54.9 per cent, auction clearance rates were also the lowest they have been since April 2020, according to the Domain Auction Report for July. 

However, Canberra agents said spring was historically the busiest time of year for the market, and we should expect the property landscape to change sooner rather than later.

James Scott of Independent Woden said while the warmer weather would bring gardens back to life, it would also bring people out of winter hibernation and onto the market.

“It’s an appealing time for selling as spring undoubtedly enhances presentation … lawns are greener, flowers are blooming and pools begin to look inviting rather than terrifying,” he said. 

“Spring is also a peak time for activity, when buyers are keen to get outside and explore as many open homes as possible. 

“More buyers mean more competition, and therefore an increase in the number of sales.”

Scott said the warmer weather and more positive atmosphere of the spring market brings out “happier buyers… livelier auctions and increased numbers at open homes”.

“Typically, we also see a large increase in the number of properties online, which means buyers have more options to choose from, unlike in winter,” he said.

“Winter markets are quieter, however many sellers prefer to take advantage of the isolated market where there is less competition.” 

Steve Lowe of Agent Team Canberra also said there was a benefit to selling in winter, despite the more favourable conditions that come in springtime. 

“While homes and gardens look a lot better and we see greater stock for buyers in spring, more choice also means less competition for your property,” he said. 

“However, I have also seen a lot of people during the colder months start to reconsider if Canberra is the right place for them. 

“I believe people feel a whole lot better and more energised once things start to warm up again.” 

While there were regular changes in the springtime from winter, the impact of current events would affect this spring and make it slightly different to others, Lowe added. 

“The market is in decline as buyers’ borrowing capacity is reduced due to rising rates,” he said. 

“I believe that once the Reserve Bank stops lifting rates, buyer confidence will return, but sellers will still need to meet the market if they want a sale.

“Borrowers are simply not getting approvals to match the asking prices in some cases.” 

Scott said it was likely the market would strengthen its position this spring as there would be more properties hitting the market, and therefore more would be selling. 

“I think house sales will remain strong, and we will see the price of units and townhouses also continue to rise as investors return to the market to have rentals online by the new year,” he said.

“Likewise, auction clearance rates will also rise again as crowds come back and competition increases. 

“It’s clear the Canberra market has shifted, but the recent changes are a sign that we are returning to a normal healthy market.”