Finance approvals double as homebuying intent surges

Finance approvals for homeseekers have surged almost 100 per cent with some lenders as buyers show their cards ahead of the Easter selling season.

While Spring is traditionally thought of as the best time to sell a home thanks to its warm, sunny days and flower-filled gardens, Autumn is shaping up to be a busy market across the country in 2024 as interest rates plateau and sellers look to capitalise on the strong growth of last year.

Here are some of the pros and cons of selling a home this Autumn plus some expert tips on how to get the best results.

There are plenty of benefits to selling your home in Autumn.

PRO: COOLER WEATHER

After a summer full of heatwaves, the cool change brought about by Autumn is sure to be a relief for buyers as they travel from one inspection to the other, CEO of McGrath Estate Agents John McGrath said.

“Like spring, people feel good about buying because it’s lovely in Autumn and I think the weather is a big part of that,” he said.

Ray White head of performance and recognition Bianca Denham said she recently called a couple of auctions on a 40 degree day.

“It was horrendous,” she said. However, despite the extreme heat, she said the auctions were still crowded, indicating that the heat wasn’t a deterrent for buyers.

The refreshing cool change of Autumn is a welcome relief after months of extreme heat.

PRO: EASTER MOTIVATES BUYERS

With many people wanting to wrap up their home purpose before Christmas, those who miss out often carry their “post-Christmas momentum” with them early into the new year, Mr McGrath said.

The Easter period is a popular time for buyers to think about their purchasing plans, Ms Denham said. While not much gets done on the Easter weekend itself, the period surrounding Easter appears to be a motivating factor similar to Christmas.

Easter means spending time with family – and dreaming of a new home.

PRO: BUYER DEMAND IS STRONG

Ray White’s sister company Loan Market has seen a spike in pre-approval applications amid speculation of a cash rate cut this year.

Over the past month there have been 1117 pre-approvals, while during the same period last year, there were 650, Ms Denham said, indicating buyer demand was stronger this Autumn than last.

McGrath has also seen a surge in demand.

“There’s been a microsurge of interest over the last month or so,” Mr McGrath said. “People are really getting a feel that the next interest rate movement will be down rather than up.”

“We’ve had a record spike in immigration over the last 12 months and that’s increased demand as well.”

CEO of McGrath Estate Agents, John McGrath.

PRO: LISTINGS ARE UP

LJ Hooker, Ray White and McGrath have each seen an increase in listings this Autumn.

LJ Hooker head of research and business intelligence Mathew Tiller said the number of appraisals across the business had also grown.

“The number of people looking to get a price for their home is up about 10 per cent compared to this time last year,” he said.

Mr McGrath said they had seen a 28 per cent surge in listings.

“I think that’s a good thing to bring buyers out of the woodwork,” he said.

MORE: Latest in home prices from PropTrack

Demand remains strong in Australia.

PRO: PRICES HAVE GROWN

Mr Tiller said many sellers would be looking to capitalise on the strong house price growth seen across much of the country in 2023. PropTrack data shows property prices went up 6.15 per cent nationally since February last year, with Brisbane, Adelaide and Perth experiencing double digit growth.

“A lot of homeowners would have built up some equity and had good capital growth over the past 12 months,” he said. “We’re still expecting prices to rise over the Autumn period, so it is a good time to be selling your home.”

LJ Hooker’s head of research Mathew Tiller.

CON: ECONOMY AND INTEREST RATES

Despite growing confidence that the era of rate hikes is over, interest rates are still much higher than there were a year or two ago, Mr McGrath said. When added to other cost of living pressures, many people are feeling the pinch and may be on tight budgets.

“The economy is soft because of cost of living,” he said, adding that while the middle and upper end of the market remains strong, “the lower end of the market is a little bit more subdued.”

Presentation is always important when selling a home.

3 TIPS FOR AUTUMN SELLERS

1. Focus on the fundamentals – at any time of the year, price, presentation and marketing are always the most important factors of a successful property campaign, Ms Denham said. She said sellers should consider a cosmetic tidy up and professional styling and ensure they choose the right selling agent with good local knowledge

2. Research the local market – with each state experiencing different levels of growth, and each suburb affected by a range of localised factors, make sure you research what properties are selling for in your local area, Mr Tiller said.

3. Be realistic about selling price – Mr McGrath said sellers should make sure their agents have provided realistic comparable sales data when giving appraisals since some agents may be desperate to secure listings after a period of low stock

Originally published as Finance approvals double as homebuying intent surges