Housing market defies the winter blues

The housing market is showing signs of recovery — in what should be the quietest time of the year.

‘We were looking for a year and knew what we wanted’: Cathy Larkins, Matt Smith and their son Zach in their new home in Tarragindi, Brisbane. Picture: Lyndon Mechielsen

The nation’s property market will face its first big test this weekend, bolstered by $15 billion in tax cuts coupled with the interest rate clip, which is expected to widely impact on the market.

Bargain hunters and first-home buyers are expected to flock to auctions today while, for the first time in two years, vendors will have the confidence to finally list their houses and apartments.

Tuesday’s cut in interest rates to 1 per cent, the second such cut in 28 days, as well as the $15bn tax cuts, are expected to lead to higher auction attendances and clear­ances. There are already anecdotal signs of improved sentiment towards winter buying, particularly in Brisbane.

Ray White chairman Brian White said he “absolutely” expected a big increase in auction attendances this weekend in Brisbane, Sydney and Melbourne, due to the interest rate cut.

“Our auction attendances increase­d from the early 20s to 45 attendances once the May 18 election finished,’’ he said. “We would be surprised if numbers are not more than 60 at our auctions today, given the interest rate cuts.

“They are big numbers and it’s an indication the market has been improving since the election and interest rate cuts.”

But he warned buyers to get in quickly to pick up the few remaining real estate bargains. He said nothing frustrated people more than to think they had missed the bottom of the market.

Some Brisbane agents are cancel­ling their winter offshore holidays in anticipation of a strong lead-up to the spring selling season­.

The managing director of Brisbane agency Place, Judy Goodger, said her four top-performing­ inner-city agencies had noticed a spike in activity post the May 18 election. Almost 70 per cent more groups attended open homes last month compared with May, with an average of 22 groups inspecting each property in the course of a campaign.

“The energy across the market has changed since the start of the year,’’ Ms Goodger said. “We are seeing a lot more positivity and confidence from buyers and sellers alike and we are bracing ourselves for a very strong spring.”

Cathy Larkins and Matt Smith pondered whether to buy their new $1.2 million home in Tarragindi, in Brisbane's south, for just five days before signing the contract­. Fear of missing out made them act quickly.

“We were looking for a year and knew what we wanted,’’ Ms Larkins said. “Before the election, all the open houses were a lot quiete­r. When you could see something you liked, you could um and ah. (But) I think things picked up after the election. It was way busier and things were going quick.”

Ms Larkins first saw the property on a Saturday morning and had contracts signed by the Thursday afternoon, despite the fact Mr Smith was on deployment in Iraq.

It’s not just buyers feeling the heat, with agents such as Brisbane’s Simon Caulfield having to cut short a planned holiday to the US to capitalise on the heavy demand for houses and apartments.

The luxury agent and director of Place Kangaroo Point has sold more than $40m in property in the past two months. “It is a huge turnover in what is usually a quiet time in property,” Mr Caulfield said.

The agency’s national head of sales and chief auctioneer, Tom McGlynn, said all six auctions he called in Sydney last weekend were successful, with each logging between five and 11 registered bidders­. He reckoned it was the strongest start to the winter period he had experienced since the ­market started to climb in 2015.

CoreLogic auction data shows clearance rates in Sydney and Melbourne are approaching 70 per cent, higher than the national weighted average of 62.9 per cent, and significantly up on the 50 per cent strike rate of the same time last year.