Autumn is here: What state is the property market in?

This time last year, Australia was in the early days of an unprecedented property boom that would touch just about every corner of the nation.

Twelve months on, the advent of autumn reveals a patchwork of property markets; some have lost all momentum as the threat of interest rate rises, price rise fatigue, and the balance of supply and demand shifts in favour of buyers.

Others are still running hot amid a shortage of property for sale and elevated buyer demand – these are the markets that are expected to continue to rise throughout the autumn months.

The latest data from Domain details the volume of new property listings, buyer demand and auction clearance rates over the past week. According to Domain’s head of research and economics Nicola Powell, the results reveal every market has changed since early March last year.

“A buyer approaching this autumn season is in a different position to what a buyer was in autumn 2021,” she said.

“This year, they’ll have much greater choice in terms of the property available for sale, and they’ll be transacting in a market with less pace.

“That red-hot urgency that was there this time last year isn’t there this autumn.”

Unless you’re a buyer in Brisbane or Adelaide: “Those cities are where there is still so much buyer demand and not enough stock.

“But overall, purchasing conditions are improving.”

Here’s what’s been happening in your capital city in the week ending February 27:

Brisbane

More Brisbane sellers are taking their properties to auction. Last Saturday’s preliminary auction clearance rate got to 74 per cent.

“The clearance rate reflects the fact that the volume of property being auctioned is much higher than a year ago,” Dr Powell said.

“That is what is significant here: the sheer volume of homes being sent to auction in Brisbane is huge, and that’s because sellers are trying to capture that competitiveness.”

The number of new properties listed for sale has fallen in Brisbane, edging down slightly by 2 per cent.

Buyer demand is up by 4 per cent, so the disparity between demand and supply was still landing in favour of sellers, Dr Powell said.

Adelaide

Like Brisbane, Adelaide is still in the throes of a red hot market with solid competition and buyer appetite.

Last Saturday saw a huge auction day, and the city recorded a preliminary clearance rate of 82 per cent, the strongest result of all capital cities.

Adelaide

Adelaide’s market is still very much a seller’s market. Photo: iStock

Dr Powell said she expected auction numbers would remain strong up until Easter.

Although new listings have dropped 13  from the recent peak, they remain high compared to last year.

For buyers who want as much choice as possible, Burnside recorded the biggest increase in new stock hitting the market.

Perth

Greater Perth’s property market has been stable over the past week. Overall, the percentage of new listings didn’t change and buyer demand increased by just 4 per cent,

There were areas that saw a 30 per cent spike in new listings over the week, such as Mundaring and Belmont-Victoria Park, but compared to the same week last year, Perth’s property listings have risen by only 1 per cent and buyer demand is down by 7 per cent compared to the same time last year.

Perth

New property listings have been stable in Perth over the past week but with the state border reopening on Thursday March 3, there could be a shift in buyer and seller activity. Photo: Xceed Real Estate

But what looks to be a quiet autumn could change quickly once the WA border opens on March 3, Dr Powell said.

“With certainty now provided around border controls, we are likely to see an influx of demand from buyers relocating,” she said.

“We could start to see an outward flow of residents, which may bring further listings to market, giving buyers more choice.”

 

Article Source: www.domain.com.au