Why this spring market could be the best time to buy a property
Our first spring in three years without COVID concerns dominating the property market is set to see a move from a Hunger Games-type frenzy for buying homes to a more restrained Downton Abbey-style pace.
New Domain Buyer Demand Indicator data shows demand has now slumped from its October 2021 peak by 32.6 per cent for houses and 27.7 per cent for units, which is likely to create much more healthy conditions for purchasers.
“The upcoming spring selling season will give buyers the reassurance of time to make the right property decisions as homes are spending longer on the market and choice has lifted,” says Domain chief of research and economics Dr Nicola Powell.
“The transition from winter to spring will see a lift in new listings and an emergence of more buyers which will test the number of active buyers and the price expectation of sellers. This will be the first real rest of the property market since interest rates started to rise.”
For sellers, although market conditions have become more challenging, the research shows that those pricing homes to meet buyer expectations are still achieving quick sales.
Underlying all the activity too is the fact that house prices in the combined capitals rose during the pandemic period by an average of 32.4 per cent, creating a strong boost in equity for home owners.
Market conditions are varied across the country, however. In Sydney, buyer demand for houses peaked in March 2021, seven months earlier than the combined capitals’ peak, which suggests it’s further along the price cycle than other cities, with affordability stifling demand.
Melbourne, Brisbane, Adelaide and regional Australia also peaked in October 2021, while Hobart peaked even earlier in February 2021, Darwin peaked in June 2021, Canberra in July 2021 and Perth much later in March this year, allying to the lifting of strict West Australian border controls.
Adelaide units also peaked later in February 2022 in line with their increased affordability and higher levels of investor activity.
At the same time, the Domain report shows buyer demand for units is higher in Brisbane, Canberra, Darwin, Hobart and Perth – the opposite of Sydney, Melbourne and Adelaide.
“I think this is going to be a good spring for home buyers,” says Judi O’Dea of Ray White Paddington in Brisbane. Source:
domain.com.au
