After a couple of years of strong winter activity in the Australian property market, experts are heralding the return of spring. Christmas arrives early for homebuyers, as both McGrath and Ray White have recorded an increase in the number of listings nationally.
The country heads into what is commonly thought of as the most popular season to buy and sell property.
BUYER OPPORTUNITIES
Real estate expert John McGrath noted that the rise in listings will offer buyers more options up until Christmas.
He also mentioned that prices might temporarily ease as buyers hold off, anticipating the first RBA rate cut before acting.
“I think without rate relief, buyers will likely be more cautious over the next six months,” he stated.
Christmas arrives early for homebuyers, but demand on the eastern seaboard has fallen since last year. Open home attendance has dropped from 15-25 to 6-12. Auction clearance rates have fallen from 75% to 60-70%.
Bianca Denham of Ray White noted that reduced demand is slowing price growth in Melbourne, Sydney, Hobart, and Darwin. Growth in Brisbane, Perth, and Adelaide is also slowing.
“What we’re hearing from agents across all market segments is that fewer buyers are inquiring about each property,” she said.
In contrast to the drop in buyer numbers reported by Ray White and McGrath, property researcher and Hotspotting founder Terry Ryder noted that demand remains robust across major markets.
Recent lending figures show both a quarterly and annual increase in loans to home buyers and investors.
He added that sales activity has been particularly strong in the rising markets of Perth and Adelaide.
Christmas Arrives Early for Homebuyers :DANGERS OF SPRING
Buying recklessly in a booming market is one of the biggest dangers buyers should be aware of, Ryder said.
“That’s been very common in Perth, where buyers are snapping up anything available, often paying above the asking price. They’re signing contracts without conditions and skipping pest and building inspections—just extreme behavior,” he said.
He emphasized that not having a realistic sales price is the biggest danger for sellers.
“We still encounter the old trick where agents overquote to secure the listing, then persuade the seller to accept a lower price,” he added.
Denham mentioned that sellers who purchased their property only six to twelve months ago risk selling it for less than they paid.
However, those who have owned their property for five years or more are likely to see a positive outcome this spring, even if price growth moderates a bit.
“The price growth we’ve experienced over the last five years is extraordinary, unprecedented, and unlike anything we’ve seen before,” she said.
Christmas Arrives Early for Homebuyers : Spring Expectations
Property experts anticipate a return to the traditional spring selling season following a few years of heightened winter activity.
Here’s what to expect: Christmas arrives early for homebuyers as more properties come onto the market, offering greater choice for both buyers and sellers in search of a new home. Buyer activity may decrease until the RBA makes its first interest rate cut, although some markets will remain strong. As the number of available properties increases, price growth is likely to soften. This is because more choices mean less desirable properties may not be in high demand and could sell for lower prices. Additionally, Terry Ryder from Hotspotting has observed a rise in demand for apartments, driven by factors such as affordability, location, and shifting lifestyle preferences.
