Property market starts year with record auction weekend

Auctioneers are gearing up for their biggest ever start to February the property market enters the new year with renewed confidence and greater balance between sellers and buyers.

Paul McGarry with daughter Eva, 15, and Radar the dog at their home in Alderley, Brisbane. Picture: Lyndon Mechielsen

Buyers and sellers will begin the year on an even keel as the property market prepares for an earlier and busier start to the new year this weekend.

More than 2100 homes are scheduled to go under hammer on Saturday, the busiest February start ever.

Leading auctioneer Damien Cooley has noticed a change in mood since the new year, with the promise of interest rate stabilisation followed by cuts and stage three tax cuts on the horizon making people feel more confident.

“What we tend to see in late spring is a lot of buyer fatigue, but now we are already seeing confidence from buyers,” he said.

“Any strong auction results early will give owners more confidence to sell their property. It’s ­encouraging for those to have a bit more certainty about their borrowing capacity and their ability to repay debt.”

In Brisbane, Ray White The Collective principal Haesley Cush is getting ready to call an auction this weekend that had 20 registered bidders by Thursday evening. He said buyers traditionally don’t return to city markets until after the Australia Day long weekend, but this year “inboxes were full” from January 2 as people used their getaways to look for a new home online.

“The banks are indicating interest rates will be lower at the end of the calendar year than they are at the start,” he said.

“We haven’t had that news since the market was pumping through Covid. That will only enhance buyer interest and activity.”

Buyers are out in force earlier, with data from the national real estate firm showing a surge interest at open homes across the country. There was a 24 per cent increase in buyers at open homes in January, with 128,386 people out looking at properties, compared to the prior year.

Auctioneer and principal of Ray White The Collective, Haesley Cush.

In the past two weeks, 69 groups of potential buyers have walked through Paul McGarry’s door. The business owner is selling his Brisbane home, along Royal Parade in the northern suburb of Alderley, to free up the capital gains he has made over the past 10 years. He heads to auction next weekend.

“Brisbane’s has had a bit of a price lull, and it seems to be heading up again now,” Mr McGarry said. “Demand is strong and supply seems fairly static.

“I think it will continue that way, but it’s still a good time to sell, there’s lots of buyers and lots of ­interest.”

In Sydney, Ray White numbers show 33,850 buyers were out in force in January and for the first time in several years they are getting more choice. The number of homes on the market in the city is returning to medium-term averages, according to PropTrack.

Chief executive of Sydney-based real estate agency BresicWhitney, Thomas McGlynn, said the first half of the year would offer great opportunities for all parties in the market as conditions normalised. But the balance of power may return to of sellers towards 2025.

“We’re probably going into a balanced market where auction clearance rates aren't going to be outrageously high, but also not super low,” he said.

“But if the interest rate cut chatter get’s louder, I think we might see a little bit of price growth this year.”

However, not all markets are equal, with limited choice in Perth and Brisbane keeping prices buoyant.