Springing into the Real Estate Market: Trends and Forecasts for Homeowners and Buyers
Weekly Market Update with Leigh Martinuzzi MPG
As the sweet scent of spring fills the air, homeowners around the country are gearing up for an exciting season in the real estate market. With a flurry of new listings hitting the scene, it’s evident that change is afoot. However, despite the influx of properties, the supply still seems to be trailing behind historical levels. Let’s take a closer look at the current state of affairs and what the future holds for the Australian real estate landscape.
A curious pattern emerges as we observe property prices. While there has been an overall uptick in prices, the rate of growth is experiencing a slowdown. This intriguing conundrum has experts divided into two camps. Some predict that as more properties are introduced to the market, price growth will continue to decelerate. On the flip side, there’s a group of optimists who foresee the possibility of a new peak in dwelling prices across the country within the next year.
Diving into the details, the property markets in Australia’s capital cities are painting an intricate picture. A collective rise of 4.2% in prices has been reported this year. In Brisbane, the figures show a 0.2% increase in the past week, a steady 1.3% rise over the last month, and a promising 2.9% year-to-date growth. Despite these encouraging numbers, the city still grapples with a -6% decline from the previous year. Sydney and Melbourne share similar narratives, showing gradual rebounds but still struggling to fully recover from last year’s declines.
The Reserve Bank of Australia’s (RBA) management of the cash rate holds considerable sway over the market’s pulse. Amid Australia’s slowing economic growth, three of the four major banks suggest that the cash rate has hit its apex. Notably, NAB’s expert, Alan Oster, anticipates a final rate increase of 25 basis points before the year draws to a close. This divergence from earlier predictions has ignited renewed buyer confidence, evident in the robust 71% clearance rate observed at recent auctions. With a more predictable cash rate on the horizon, we can expect buyer confidence to further bolster as we step into the vibrant spring selling season. In fact, experts from most major banks predict that the cash rate could reach as low as 2.6% by the end of 2025.
The market is witnessing a surge in new property listings, though they still lag behind past averages. Sydney and Melbourne stand out with significant spikes in new listings, possibly driven by a growing interest from individuals looking to migrate to coastal regions such as Queensland’s Sunshine Coast. This intriguing migration trend could usher in positive results for local markets, potentially setting the stage for exciting developments in the coming months. Amid these changes, a clear message is emerging: quality and presentation are key. Homes that are well-presented and appropriately priced are finding eager buyers swiftly.
As we gauge the health of the market, a crucial metric emerges—the median days on the market. Currently standing at an average of 34 days across Australia, this figure is slightly higher than the peak of the booming markets of 2021 and 2022. Nevertheless, it remains historically low, indicating robust buyer demand capable of absorbing the influx of new listings.
For those seeking a comprehensive understanding of the evolving Sunshine Coast hinterland market, look no further than my YouTube channel (link here). My weekly suburb updates provide invaluable insights for both buyers and sellers, ensuring you’re well-equipped to navigate the dynamic spring market. Plus I post many other exciting videos about not only the property market but our wonderful local community also.
As spring unfolds its petals, the real estate market mirrors this season of growth and renewal. With cautious optimism, we traverse this changing landscape, armed with insights that empower buyers and sellers alike. Whether you’re preparing your home for sale or embarking on a house-hunting journey, understanding these evolving trends will be your compass in navigating the dynamic spring market. Keep an eye out next week for my blog on how best to prepare your home for a Spring sale.
