As we step into the heart of the spring property market, buyers and sellers are gearing up for the last significant opportunity to transact before the year-end slowdown. Traditionally, spring sees a surge in property listings, and this year is no different. The warmer weather and extended daylight hours bring renewed energy to the market, driving up activity levels across Australia’s capitals. However, 2024’s spring season is not without its unique challenges and opportunities.
A Surge in Listings Amidst Tight Supply
Spring 2024 has ushered in an expected boost in property listings, especially in key markets like Sydney and Brisbane, where population growth and infrastructure projects are fuelling demand. However, the supply of “saleable” stock remains tight, with a significant portion of listed properties lingering due to quality issues or overpricing. This limited inventory continues to drive price competition in certain markets.
For example, Brisbane remains at the forefront of price growth, with house prices surging 19.2% over the past year. By contrast, markets like Canberra and Darwin have experienced slight declines due to softer demand.
Interest Rates: A Key Factor
Interest rates have had a profound impact on market dynamics in 2024. Although the cash rate remains at its highest in over a decade, the feared spike in distressed listings has not materialised. Many households have adjusted by refinancing or negotiating new rates
This has allowed buyer demand to persist, particularly as the Reserve Bank of Australia (RBA) recently paused rate hikes, providing some relief for those entering the market during the busy spring period.
What the Data Tells Us
Despite higher borrowing costs, national property values continue to rise. CoreLogic reports a 0.5% increase in August 2024, marking the 19th consecutive month of value increases.
Sydney and Melbourne have seen moderate growth, while Adelaide leads the nation in house price gains. These trends are expected to continue into 2024, with demand remaining robust due to the chronic housing undersupply, particularly in urban centres.
Final Push Before Christmas
As we approach the end of 2024, the property market shows no signs of cooling. Buyers looking to secure a home before Christmas will face stiff competition, especially in high-demand areas like Sydney, Brisbane, and Adelaide. Meanwhile, sellers have a golden opportunity to capitalise on strong prices before the holiday slowdown.
For both buyers and sellers, the message is clear: act quickly, plan strategically, and be prepared for a competitive market. The ongoing supply constraints, coupled with strong buyer demand, will likely keep upward pressure on prices through the remainder of the year.
This spring, the Australian property market is offering a final burst of activity before the traditional Christmas slowdown. Whether you’re buying, selling, or simply watching the market, now is the time to act before the year draws to a close.