Property market set to heat up after Easter

Easter is traditionally a time when the property market grinds to a halt, but agents across Canberra are pointing to a modest blip before April turns into one of the most frenzied months in some time.

Jonny Warren from Jonny Warren Properties said the market is set to be busier next month than it was at the same time last year.

“We’re seeing strong enquiry from potential buyers and a lot of activity at the lower end, particularly for properties under $1 million,” he said.

“In the last week alone, we have sold 11 properties between the prices of $600,000 and $950,000.

“Factors such as reduced borrowing capacity are driving the increase in demand for properties in this price range.”

MARQ Property’s Sam Taylor said that, after a year of uncertainty and the influx of interest rate rises, investors have returned to the market.

“There are definitely more investors back in the market compared to the same period last year,” Taylor said.

While consumer sentiment remains passive overall, with a decline in the Westpac Melbourne Institute Consumer Sentiment Index, housing purchase assessments are on the rise.

The consumer sentiment index declined by 1.8 per cent in March to a reading of 84.4, from 86 in February, but the assessment of whether it is now a good time to buy a dwelling improved slightly, even as affordability challenges remain acute for many.

The overall decline comes as a reality check after a modest pick-up in the index in recent months had offered glimmers of hope that cost-of-living pressures might be starting to ease.

Inflation remains a key topic of concern, although recall levels eased below 50 per cent, from the highs of above 60 per cent seen last year.

Indeed, the latest consumer price index (CPI) shows inflation is tapering off.

According to the latest data from the Australian Bureau of Statistics (ABS), the monthly CPI indicator rose 3.4 per cent in the 12 months to February.

Michelle Marquardt, the head of prices statistics at the ABS, said that annual inflation was unchanged in February, remaining at 3.4 per cent for three consecutive months.

“The most significant contributors to the February annual increase was housing, which increased by 4.6 per cent,” she said.