The property market in Australia has favoured sellers for the last few years, with prices rising exponentially during the pandemic then settling into a steady growth trajectory due to a lack of supply, shortage of new homes being built and surge in migration.
Even rising interest rates failed to quash price increases during 2023 and early 2024, but it looks like the second half of 2024 may be a different story.
Recent property statistics in Australia
CoreLogic reported in early August that overall home values rose by 0.5% in July. However, prices declined in three capital cities over the most recent quarter.
Melbourne home values receded by 0.9%, while Hobart and Darwin experienced respective drops of 0.8% and 0.3%. Meanwhile, Sydney’s growth eased to 1.1%, a marked difference from the 5% quarterly rise experienced a year earlier.
Perth, Adelaide and Brisbane are the cities bucking the downward trend. Thanks to low supply and high demand, these popular destinations are still catching up to the higher prices of other major capitals, so growth rates remain between 3.8% and 6.2% for the quarter.
Is Australia switching to a buyer’s market?
The answer to this is “yes and no”.
A buyer’s market happens when there are more homes available for sale than there are people interested in purchasing them. This typically results in lower property prices and gives buyers greater leverage in negotiations.
In a buyer’s market, home buyers have the advantage of being choosy and making a purchase on their own terms. Sellers may experience a longer wait for offers and may not witness the bidding war they were hoping for. It doesn’t mean it’s impossible to sell a home, just that the experience is different.
Whether or not a home is in a buyer’s market depends on location, property type and the competition in the area. For example, unit prices are steadily rising at the moment as buyers find themselves unable to afford their ideal home so the same suburb can potentially be a seller’s market for units and a buyer’s market for houses.
The current market in Australia can be described as ‘multi-speed’, with different results being experienced in different parts of the country.
Is now a good time to sell?
According to CoreLogic, “The underlying mismatch between housing supply and demand looks set to support housing prices through the second half of the year, however there does seem to be some ebalancing (of prices) underway.”
With this in mind, it’s a good time to consider selling. Depending on your location, it could be a good idea to list your home before the market loses any more momentum. Then, when you become a buyer yourself, you can take advantage of less-than-buoyant prices.
If you’re thinking of selling and not sure if the timing is right, the best thing you can do is speak with a real estate professional who can provide advice about your specific location and property, and share their insights about current demand and sale outcomes.
Want advice about whether to list your home for sale before the end of 2024? Reach out at teresa@teresaberger.com.au today.
