House sellers race to beat rate rise and federal poll

Rapid price growth has begun to decelerate across the county and the market is unlikely to pick up again, experts say.

Jessie Schattner and Evan Blake with daughter Sierra, 3, at their home in Sydenham in Sydney’s inner west. Picture: Britta Campion

Sellers looking to take advantage of the twilight days of the current property boom should get in ahead of the federal election and a possible rate rise, experts say.

Rapid price growth has begun to decelerate across the county as more homes are offered to market and, as a result, buyers are given more power to choose and negotiate. The market is unlikely to pick up again to mirror the massive gains experienced last year, with rising cost of living, growing economic uncertainty and open international borders allowing more people to access the market.

The looming federal election is also likely to dampen conditions, with fewer transitions traditionally recorded through the campaign as people wait for the outcome. But PropTrack’s director of economic research, Cam­eron Kusher, warned market watchers not to expect a post-election rebound akin to the “ScoMo bounce” of 2019, which arose from a confirmation negative gearing and capital gains taxation policies would remain and an interest rate cut in the proceeding weeks.

“We are going to see fewer auctions and listings as there will be a lot of disruptions going forward – Easter, Anzac Day and the election,” Mr Kusher said. “The labour market is really strong so an interest rate rise is looking ­increasingly likely to be sooner than the original Reserve Bank forecast of 2024. So there is a sense buyers and sellers need to get in now ahead of a rate rise.”

It means the coming few weeks could prove crucial for those considering selling, Ray White managing director Dan White said. Internal data from the national real estate agency found auction numbers in 2022 were 50 per cent higher than the same time last year, with four in five properties sold under the hammer after attracting an average of 5.8 registered bidders.

“What we do know is that market fundamentals right now are still helping our clients who are looking to sell,” Mr White said.

“There’s a deep buyer pool for sellers to take advantage of. Our question remains: What are you waiting for?”

Sydney sellers Evan Blake and Jessie Schattner, aged 37 and 30, are to take their Sydenham home to auction this month through Timothy Gorring of Ray White Surry Hills now that the market has calmed from the fevered pace of last year. “We tried to sell last year and got absolutely terrified about not being able to get back in,” Ms Schattner said. The couple – who both work for family business Gillie and Marc – are selling now to beat the Easter period.

“There is a lot of insecurity around,” Mr Blake said. “It would be ideal for us to get in before a rate rise. It is a looming concern.”