Spring property market: Relief for desperate buyers as listings are likely to rise

Home seekers that are waiting for spring bargains will likely end up empty handed and may struggle to get into the market later on, according to housing experts.

Home seekers who sit on the fence waiting for spring bargains will likely end up empty handed and may struggle to get into the market later on, housing experts have warned.

It comes as agents brace for a bump in property listings as the weather warms, with the greater choice of available homes set to ease buyer competition for properties.

The increase will be especially welcome news for those who have grappled with the record-low supply of new listings seen in most areas over winter, which helped boost prices.

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And while this climate is set to change over spring, a panel of Property Investment Professionals of Australia members said the chance of a market correction that would push down prices was slim.

Buyers are advised not to wait too long for bargains to pop up this spring. Picture: Julian Andrews

PIPA chair Nicola McDougall said rapid migration, especially into Sydney and Melbourne, was mitigating some of the impact of higher interest rates and rising listing volumes.

“Part of the reason why prices have been strengthening is the significant number of overseas migrants – some half a million seemingly,” she said. “(It’s) causing rental markets to continue to struggle with a critical undersupply of stock.”

Ms McDougall said it also appeared that the rising interest rate cycle may have come to an end, providing some confidence to property buyers around the nation.

Head of Property Investment Professionals of Australia, Nicola McDougall Thursday April 28, 2022. Picture, John Gass

Adrian Tsavalas, the director of real estate group Adrian William, said spring conditions would be better for buyers than winter but still challenging.

“It will be easier but there won’t be the low prices that many bargain hunters will have hoped for,” he said.

Ray White chief economist Nerida Conisbee said home seekers’ fortunes would vary depending on the types of properties they targeted.

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“Turnkey” properties – those that have been renovated or were in excellent nick – would be hotly contested, she said.

Properties requiring improvements or those in poor locations such as busy roads would likely struggle to sell as most of the current buyers were not interested in these properties, Ms Conisbee said.

Property buyers would also face stiffer competition at the more affordable end of the market because interest rate hikes had slashed buyers’ budgets.

Ms Conisbee said there could be properties sold for prices well below their 2022 peak but most would be at the top end of the market.

Ray White chief economist Nerida Conisbee.

Victor Kumar, the director of Right Property Group, said spring would be a critical test for the market.

“Selling agents that were expecting a whole raft of properties to hit the market, as they report fielding increasing calls for market appraisals, are still to bring these properties on the market,” he said.

“Owners struggle to rationalise selling their properties, as they cannot qualify for a new loan at the same or higher level under the current lending constraints, and renting is also a struggle, with a strong shortage in most areas.

“Construction starts are still, year on year, quite low, which will serve as a great buffer to the potentially softening prices, forcing to keep the price and rent trends still in an upward trajectory.”

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Originally published as Spring property market: Relief for desperate buyers as listings are likely to rise