The spring selling season is upon us, and it will be a litmus test for assessing the strength of the Australian property scene.
More properties will come onto the market in the next few months, and the big question will be whether prices can sustain recent growth trends or dip in the face of buyer caution and oversupply.
Based on recent auction results reported by industry researcher CoreLogic, there’s reason for sellers to be optimistic.
Clearance rates in recent weeks have been hovering around the 70% benchmark, which indicates continued buyer confidence and strong returns for sellers.
In mid-August, our state capitals recorded the highest preliminary clearance rate in six weeks based on 2000+ properties falling under the auctioneer’s hammer.
Sydney and Melbourne are the busiest auction markets in the leadup to the spring selling season, with CoreLogic reporting the number of listings in both cities above the five-year average.
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Auction houses say Sydney’s preliminary clearance rate in one August week hit 77.5%, which is the best result since 78.7% was recorded in June. This time last year, the Sydney market was languishing with a 59.1% clearance rate.
CoreLogic’s RP Data platform has noted the first signs of renewed activity in every state.
Agent activity is 14.8% higher than 12 months ago and 31% above levels in 2019. Broken down by state, we see Western Australia up 7.5% compared with last year, followed by Tasmania (6.1%), South Australia (5.7%) and Queensland (5.4%).
Our agents predict strong results for owners who commit to sell this coming spring. These questions may help you decide whether to put your home on the market.
Your motivation
Why do you want to sell? Understanding your reasons for moving will ease any anxiety about selling your current property and help accurately target the location, size and style of home you need next.
Market strength
Focus on local buyer demand and match it to the number of properties for sale. Quiz agents on this aspect of the market, plus price trends and the average time it takes to find a buyer for a home similar to yours.
Value proposition
Ask an agent to estimate the potential value of your home. Be realistic with your expectations because over-priced properties will languish on the market, especially if there is a spring surge of properties for sale.
Market ready
Homes in pristine condition usually sell quickly and for a good price. Assess whether your home is ready for sale. You won’t maximise its value if it has problems or needs renovation.