Buyers are gaining the upper hand from sellers heading into the peak spring selling season, meaning it could be “an ideal time” to buy.
With demand easing and housing market activity cooling as interest rates rise, buyers face less competition and have more choice and time, as listings grow and homes take longer to sell.
PropTrack senior economist Eleanor Creagh said market conditions are rebalancing across Australia, from a strong seller’s market last year to one that’s shifting in favour of buyers.
That could make it easier to get into the market than has been the case for a while.
“There’s a lot less competition – stock isn’t moving as quickly and the fear of missing out has subsided,” Ms Creagh said.
“For those ready to purchase, there’s also a lot more choice, which could create opportunity for some, particularly in Sydney, Melbourne and Canberra where options have increased the most.”
Ms Creagh cautioned that buyers should also keep in mind that borrowing costs are on the rise ve recent period of exceptional price growth is at an end, with prices already slipping.
Buyer’s agent Rich Harvey, CEO of propertybuyer.com.au, said many are waiting for the predicted fall in prices, but said the challenge for any buyer is knowing when the market has plateaued.
“Really, the next three months is one of the ideal times to buy because consumer sentiment is at its lowest point right now,” Mr Harvey said.
“If you’re a smart buyer and you’re ready to buy, why wouldn’t you buy now when there’s very little competition. If you can find the right property, go for it. Waiting until interest rates finish rising means the market will stabilise and then there’ll be a lot more competition.”
Buyers face less competition this spring selling season, with experts saying it could be an ideal time to buy. Picture: Getty
Ms Creagh said demand from prospective buyers has moderated as rising mortgage rates shrink budgets, combined with weak consumer sentiment and expectations of continued home price falls.
“Some buyers may be holding off waiting for a better deal, but trying to time the market isn’t necessarily a great strategy,” she said.
“Many buyers are also sellers in the same market, so although the property they buy could be cheaper, they would also get less for their own home.”
Ms Creagh said there may also be people watching and waiting given the market has shifted quickly and there is some uncertainty around future borrowing costs.
"Inflation has risen and household budgets are under pressure,” she said.
“While the labour market is strong, with unemployment the lowest since August 1974, confidence has fallen sharply, indicating that many are feeling a sense of unease about the future. That could keep buyers on the sidelines.”
Fewer buyers are competing for an increased number of properties for sale, meaning homes are taking longer to sell. Picture: Getty
Homes are taking a little longer to sell
Competition has eased with an increase in properties available for sale this year and moderating buyer demand, meaning properties are no longer selling as quickly.
“Market conditions have cooled as buyer confidence has waned, and auction volumes and clearance rates have fallen, sales volumes have slipped and home prices are falling,” Ms Creagh said.
PropTrack data shows the median number of days a property was listed on realestate.com.au in July was 43 days, up from 39 days in June.
Ms Creagh said as demand has weakened, properties are taking longer to sell and that is likely to be a lasting trend.
“Fewer buyers are now competing for an increased number of properties for sale.
“This has brought a much healthier balance to the market as dynamics shift in favour of buyers, particularly in Sydney and Melbourne, with competition easing and days on site climbing as a result.
“As spring approaches, this dynamic may intensify with sellers listing before the market slows further and older stock taking longer to sell, providing even more choice for buyers and further easing competition.”
İle home prices falling and expected to decline further, Ms Creagh said vendors’ price expectations will need to adjust in line with market forces.
Mr Harvey said buyer demand has waned as interest rates rise rapidly.
“The number of people at open houses and the number of bidders at auctions have dropped off, particularly in Sydney and Melbourne.
“Buyers really feel like they’ve got more power now in the negotiations,” he added.
Olmuştur a wave of newly-advertised stock for sale on realestate.com.au this year. While new listing activity slowed during the quieter winter period, July marked the largest year-on-year increase since 2010 in the total number of properties listed for sale.
An increase in listings this year is good news for buyers. Picture: realestate.com.au/buy
Spring is traditionally a peak period for homes to come onto the market, although last year’s selling season was delayed by Covid lockdowns in key markets.
Mr Harvey said more stock will hit the market in spring, although he expected some vendors may hold off if they did not need to sell while the market is a bit softer.
“We’ll probably see a fairly active market,” he said.
“I think there’ll be a lot more buyers that will hopefully see the light and realise now’s actually a good time to buy and get out there and be serious about buying.”
