Property buyers could be warming up for the best spring market yet
Real estate agents are gearing up for an early spring market as new data shows sellers are listing their properties in droves and fuelling buyer demand – the perfect storm for heightened market activity.
While winter is usually a quieter period for trading property, activity tends to ramp up in spring as buyers and sellers take advantage of favourable conditions like warmer weather, and buyers trying to purchase property ahead of the summer holiday season.
The number of new listings across the combined capital cities hit a record for the month of July after climbing 14.9 per cent year-on-year, according to Domain data.
In Melbourne, Adelaide and Canberra, the number of new listings was the highest on record for the month of July, and the second highest in Sydney.
The total supply of listings for the month were at their highest level in a number of capitals including Melbourne (highest on record), Hobart (highest since 2016), Canberra (highest since 2019), and Sydney (highest since 2022).
“We’ve seen a steady stream of new home listings throughout autumn and winter, consistently topping the five-year average in most capital cities,” says Domain chief of research and economics Dr Nicola Powell.
“Demand has held up, thanks to rising investment and first-home buyer activity, but the higher supply is definitely testing how deep buyer interest really goes.”
Powell says total supply across the capital-city markets has also risen which will “set the foundations for a good spring for buyers”.
“Traditionally, activity increases in spring and we’ve got to remember that with the Christmas and New Year deadline, people want to transact on their homes before then,” she says.
“So we’ll get this vacuum effect with really busy months ahead and that will test buyer depth and appetite.”
In Canberra, new listings are up 33.9 per cent year-on-year – a welcome reprieve for local agents who’ve felt the effects of low stock levels.
Steve Whitelock of Belle Property Canberra says the pause in interest rates has given sellers the confidence to list their properties.
“We have people who’ve been sitting on their hands waiting to see what would happen with interest rates, and now that there’s been a pause, they’re more confident that there’s stability heading into spring,” he says.
“The Canberra market has been quite sluggish as of late but there’s some growth in the market especially coming into the warmer months.”
In Melbourne, where new listings are up 18.4 per cent year-on-year, real estate agent Jonathan West of Nelson Alexander Essendon says the winter market has been “incredibly fruitful”, with heightened market activity pointing to a busier-than-usual spring season.
“We’ve had some record results across the inner north of Melbourne with houses, apartments and townhouses all coming to the market,” West says. “Certainly, with whispers of a potential interest rate reduction in the future, it will only spur buyer confidence in the marketplace.”
Melbourne’s property market has seen quite lacklustre growth this year but the latest Domain House Price Report shows house prices have grown by 1.7 per cent over the quarter and 3.6 per cent year-on-year to $1,068,805.
“Prices have been consistent throughout this year,” Nelson adds. “In the last three to four months, we’ve been recording auction clearance rates in the 80 per cent range and I think we’ll continue to see that and more listings come to market.”
In Sydney, while new listings in July were up slightly by 6.7 per cent year-on-year, agent Ben Pike of Pulse Property Agents says “spring is definitely coming earlier”.
“People still need to move in terms of life cycle changes, rates are back on hold, there is more competition in the market – so sellers are now meeting the market,” he says.
“We sold a property in Engadine recently at auction with 14 registered buyers for $2.6 million – $650,000 above the suburb record, which was a huge surprise for our team because we initially guided it around $1.8 million but then feedback took it higher and then at auction, that competition took it to new heights.”
Pike says he doesn’t expect spring sales to be at that level but the activity is a clear indicator of what the season will bring.
“Listing numbers have doubled in a month and I haven’t seen that [before],” he says. “And as a result of that, we’re seeing more competition and properties are selling well above reserve guides so we’re expecting a strong start to spring.”
While agents are welcoming the slew of new property listings, Powell warns that it will not be enough to service the level of demand for property.
“Even with the supply rebalancing in some cities, it’s important to remember that we’re still not building enough new homes to keep up with population growth,” she says.
“There is still very much a structural undersupply of housing. There are many Australians that are still under-housed, and that means that they’re not living in homes that suit their needs and [we are] not building enough homes to meet population growth”
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