Any discussions about the Australian property market lately have been pulled in different directions by opposing opinions and forecasts.
- The Australian housing market has remained resilient to material correction
- Serious buyer activity on realestate.com.au has increased compared to the same time last year
- If you were thinking of selling in the next 12 months, right now could be the most stable and predictable market that we will see for some time to come.
According to the CoreLogic Home Value Index results for May, Australian dwelling values posted their first month-on-month decline since June last year, with the national index down 0.4% over the month.
However, the slight reduction in values comes as transaction activity in the market begins to show more positive signs.
CoreLogic head of research, Tim Lawless, said:
Considering the weak economic conditions associated with the pandemic, a fall of less than half a percent in housing values over the month shows the market has remained resilient to a material correction. With restrictive policies being progressively lifted or relaxed, the downwards trajectory of housing values could be milder than first expected.”
Although real estate restrictions are lifting and things are opening back up, total listing numbers still remain quite flat, but if we review this in conjunction with the slight increase in new listings of late , it seems to suggest that properties are being snapped up by keen buyers.
In a positive turn, the latest REA Insights Weekly Demand Report outlines that the volume of serious buyer activity on realestate.com.au nationwide has increased by a further 0.8 percent last week.
High-intent listing interactions (characterised by activities such as looking at photos of a listing multiple times, saving the property and making an enquiry with the agent) on realestate.com.au have more than doubled in the past 10 weeks, an increase of 36.3 per cent compared to the same time last year.
This reflects what we’re seeing on the ground here at Upside - the buyers are back! This week we saw the highest number of open for inspection attendees since January, which in a normal climate is highly indicative of a positive return to normal. In this new era, we remain ready and alert to take on wherever the market heads.
The heightened buyer interest has been spurred on by historic low level of stock available to currently interested buyers. With the economy yet to fully recover, a general sense of uncertainty grips the nation, making those who want to foray into the market a little bit more hesitant; but low interest rates and some lingering determination to buy into the property market has kept the cogs turning.
So what does this mean if I’m thinking of selling in 2020?
As buyer demand absorbs the increased new stock coming to market, well-priced and well-presented property in addition to professional marketing is more crucial than ever. With stock remaining tight, all evidence suggests that right now could be the most stable and predictable market that we will see for some time to come.
What lies ahead?
A few things are forecast to change and impact the housing market in Australia:
- Mortgage freeze coming to an end
- The end of JobKeeper in September
- Unemployment rates above 10%
- 730,000 interest-only home loans converting to principal and interest repayments later this year
- Leap in vacancy rates across all major cities
RELATED: May: A look at the property market
This means that if you are thinking of selling, right now is the right time. Correct pricing and great marketing will enable you to truly take advantage of the stability of the present market conditions. If you’re a buyer, there are still good properties on the market (and they are moving), but with tighter stock levels, coming across the right property for you may mean being prepared for a solid bid to win your dream home.
On the fence about selling? The best way to determine your next course of action is to get in touch with your local agent about your options and find out the market trends in your area.