Source: Real Estate
According to the PropTrack Home Price Index, national home prices rose by 0.2% in August, marking 20 consecutive months of growth and a 6.2% increase compared to last year. Sellers remain confident as the spring selling season kicks off, bringing a surge in new listings and more choices for buyers. So far in 2024, preliminary sales volumes are 10.5% higher than the same period in 2023, showing buyers are taking advantage of the increased availability of properties.
However, the performance of the market varies significantly between cities. Perth, Adelaide, and Brisbane are leading the charge with strong demand and limited supply, driving continued price growth. In these markets, total listings are up to 50% below the five-year average, creating intense competition among buyers and fueling a strong seller’s market. Factors such as relative affordability, tight rental conditions, and population growth are major contributors to this demand.
Conversely, Melbourne, Hobart, and Canberra are experiencing higher levels of stock, with total listings in some areas over 30% above the average of the past five years. This significant increase in listings provides buyers with more choice and creates a competitive environment for sellers. Melbourne, in particular, has seen softer price momentum, with the inner city, west, and Mornington Peninsula regions showing the weakest performance. The city's property market has also been affected by higher property taxes and balanced construction rates compared to population growth.
Sydney’s Diverse Market Conditions
Sydney sits somewhere in the middle, with a mix of market conditions. Some areas are experiencing a surge in listings, while others continue to see demand outpacing supply. Home prices in Sydney have grown by nearly 6% over the past year, but the rate of growth varies significantly by region. Parramatta and the inner southwest are leading with price increases close to 10%, while Baulkham Hills, Hawkesbury, and the city’s inner south have seen more modest gains due to increased stock levels.
Spring Outlook: Buyers’ Markets vs. Sellers’ Markets
As we move deeper into spring, the balance of supply and demand will play a crucial role in shaping market outcomes. In areas like Melbourne, Hobart, and Canberra, where choice is abundant, buyers are expected to hold the upper hand, potentially slowing price growth. Meanwhile, in Perth, Adelaide, and parts of Brisbane, where stock remains constrained, sellers will continue to enjoy favorable conditions with ongoing strong price rises.
While spring will bring more listings, the number of active buyers is also set to increase, especially in regions where housing demand remains strong. For buyers, this season offers a golden opportunity to explore more options, but in the most competitive areas, they will need to act swiftly as the market heats up.
Key Takeaways for Buyers and Sellers This Spring:
For Buyers: Spring presents a wider range of options, but competition remains fierce in high-demand areas. Be prepared to act quickly, particularly in markets like Perth, Adelaide, and Brisbane, where stock is limited.
For Sellers: This is a prime time to list your property, especially in markets where demand outstrips supply. However, in oversupplied regions, be strategic with pricing and marketing to stand out among increased competition.
City Variances: Keep an eye on local market conditions, as performance can vary greatly not just between cities but within neighborhoods. Understanding these dynamics will help you make informed decisions this spring.
As the season progresses, both buyers and sellers should stay informed on the evolving market conditions to navigate this busy period effectively. Whether you’re buying your dream home or selling to capitalize on current conditions, this spring is shaping up to be a dynamic and active season in Australia’s property market.
If you have any questions or need any information about Australian property, buying Australian property, selling property or looking for property management, you can leave a message or WhatsApp +61 481 988 806 to contact real estate expert, Entre Shield Property, we have the most professional sales consultants to answer any related questions for you!
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