Spring to lure new homes to property market

Last weekend’s lull in auction numbers is expected to make way for a rebound in property numbers.

John and Paula Lisignoli at their family home in Norman park in Brisbane's inner east. Picture: Lyndon Mechielsen/The Australian

John and Paula Lisignoli are part of a growing number of homeowners putting their homes on the auction block as the markets look towards Christmas and the new year.

They had considered listing their family home for more than a year, finally deciding to try their hand at auction later this month. Now three of their four children have left the nest in the inner Brisbane suburb of Norman Park, and with continued signs of growth in the property market, the couple decided the time is right.

“There has been a lot of success at auction lately. The market is good in spring because it is when people start to make decisions around property,” Ms Lisignoli said.

“It is also a popular time for interstate buyers who want to be settled by Christmas.”

The traditional Melbourne Cup lull in auction numbers is expected to make way for a rebound in property numbers and continued high clearance rates as the market sprints towards Christmas.

The predicted strong finish to the year is likely to follow the same trend as 2018, data compiled by property researcher CoreLogic for The Weekend Australian. The key difference will be clearance rates, with this years’ consistently strong results of more than 75 per cent in Sydney and Melbourne expected to dwarf the meagre finish to the year of around 55 per cent.

Low listing levels have affected this year’s spring auction season, stirring intense competition between bidders. Total listing levels have risen more than 40 per cent since July but still sit 13 per cent lower year on year.

Increases have largely followed on to auction numbers, with the 1529 properties recorded in the first week of September eclipsed by the more than 2500 auctions expected through the remainder of November.

Nerida Conisbee, chief economist at classifieds site Realestate.com.au, said lower numbers in premium markets that attracted a high portion of auctions would help drive strong clearances into Christmas.

“Everything about premium markets in Melbourne and Sydney is strong,” Ms Conisbee said.

“People at that price point are finding it easier to get finance and it is a lot cheaper. There’s also not much on the market so there’s a lot of competition.

“There is this strong dynamic between lots of buyers looking to get into the market and comparatively few sellers.”

Despite the market beginning to show optimistic signs and strong competition at auction, vendors are still holding out.

CoreLogic’s Kevin Brogan said property discussions over Christmas would help entice potential sellers into the market next year. While in the bottom of the market it may be seen as the wrong time to sell, Ray White chairman Brian White said sellers looking to upgrade would be able to get in before prices rose.

The Lisignolis hope to sell their home at 18 Patrick Street, Norman Park on November 23, enabling them to downsize.