Your Domain: More buyers and sellers in the market for a strong start to spring, new data reveals

Sellers and buyers are emerging from winter hibernation for the start of spring, with more sellers listing and selling their homes and more buyers hitting open for inspections, new Domain data reveals.

Nationwide, since the start of spring, property listings on Domain are up 4 per cent, open home attendees are up 14 per cent, and the national auction clearance rate is up 2 per cent

“We’re seeing a real market improvement,” said Domain managing editor Alice Stolz in explaining the numbers on Your Domain on Saturday. “Spring listings are up and people want to buy in spring when stock levels are higher.”

Stolz explained the market had regained momentum since the May federal election, which confirmed the status quo for property policies such as negative gearing and capital gains tax, as well as loosened lending criteria.

But there’s a different story in each capital city. Sydney and Canberra are experiencing the best growth market indicators in the past four weeks.

In Sydney, properties listed on Domain rose 16 per cent from the beginning of August. There are plenty of buyers out in force too, with 24 per cent more visits to open homes in the past four weeks.

Sydney auction clearance rate results from September shows a strong 71 per cent of homes up for auction are selling under the hammer – the highest rate for over two years. The clearance rate rises 5 per cent when including properties sold within two weeks after failing to at auction.

One-third of Sydney auctions sold prior in September, which “really shows people are saying ‘I want that property and I’ll do anything to get it’ and not waiting to go to auction”, Stolz said.

Source: Domain

In Canberra, listing numbers increased dramatically by 40 per cent since the start of spring, and increased 17 per cent year on year – the only capital city to do so.

Sellers in Hobart and Adelaide are also coming out of the woodwork, with increases of homes on the market of 7 per cent and 10 per cent, respectively.

Melbourne had decreases in listing volumes of 7 per cent and Perth had 6 per cent fewer open home visitors.

Similarly, listing numbers are still low in Melbourne compared to this time last year despite the improved sentiment; Stolz suggesting that may not really be felt in the Melbourne market until autumn next year.

But when compared to the same period last year, there are fewer properties on the market across the country, though a strong start to spring in some cities is a good sign for sellers.

“Last month in Melbourne, 5 per cent of sellers withdrew their houses before auction which was down year-on-year. It means people aren’t getting cold feet. Sellers are getting quite confident in their selling ability,” Stolz said.

Source: Homepass, Domain

Elsewhere, Adelaide clearance rates are steady but in Perth, where there is not a strong auction culture, clearance rates have plummeted to 12 per cent in September from highs during that city’s boom in 2013 of about 50 per cent. Clearance rates more recently have hovered about the 20 per cent mark.

This is all adding to an increased sense of urgency for first-home buyers, Stolz said, knowing that prices will rise on the back of interest rate cuts, and on the back of higher Sydney and Melbourne clearance rates.

Your Domain airs at 10am on Saturdays on Nine. Catch up on all episodes on 9Now.