A sense of urgency is returning to the property market as homebuyers look to make their move before an expected interest rate cut later this year.
Real estate agencies say buyer demand has been keeping up with an increase in property listings hitting the market, with some smaller capital cities remaining ‘grossly undersupplied’.
PropTrack data shows home prices have already risen 6.2% over the past 12 months despite rapidly rising interest rates, with economists forecasting further growth throughout 2024 as expected rate cuts underpin confidence and allow borrowers to take on larger loans.
PropTrack senior economist Eleanor Creagh said the expectation of future interest rate cuts was likely providing a positive tailwind for activity.
“Housing demand is also being buoyed by population growth, tight rental markets, resilient labour market conditions and recent home equity gains,” Ms Creagh said.
Autumn is expected to be hotter than normal as buyer urgency returns. Picture: Getty
Agents say autumn is shaping up to be hotter than normal as homebuyer FOMO – a fear of missing out – returns across the country.
We asked several leading real estate agencies for their views on where the market is heading over the autumn months, and the areas where buyers can still find value.
Melbourne property predictions
The Melbourne real estate market has also been awash with new home listings so far this year, with new listings up 35.4% in February compared to the same time last year, and total listings were up 21.5%, according to PropTrack.
O’Brien Real Estate corporate director Dean O’Brien said there’s a lot more choice for homebuyers.
“I’ve noticed a greater volume of properties coming onto the market as we have moved through the summer and into the autumn,” Mr O’Brien told realestate.com.au. “It’s a very positive time for the real estate market.”
New listings in Melbourne were 35.4% higher in February than the same time last year. Picture: Getty
State land tax increases announced in Victoria last year were driving landlords to list their properties for sale, he said.
“There’s a lot of landlord selling and investment properties coming to the market due to the state land taxes,” he said.
“Investors are certainly selling off at the moment, but it means there is more choice for homebuyers who are upgrading or downsizing.”
Home prices in Melbourne increased 0.28% in February to $797,000, up 1.33% year-on-year.
Source: realestate.com.au
