Somehow the property market is good for both buyers and sellers right now

Usually, the property market leans one way or another. It’s either great for sellers seeking capital gains because there’s lots of competition, or it’s great for buyers because there are a lot of homes for sale and not much demand – meaning you could grab a property with a cheaper home loan.

However, according to data from property research firm CoreLogic, neither buyers nor sellers have an edge in today’s property market. So what’s going on? And what do buyers and sellers need to know about getting the best deal right now?

Spring sales stock is up

Spring property season is usually Australia’s busiest. Many owners and investors have advertised their properties for sale in the last few months, increasing new listings to over 38,400 in the month leading to 8 October (a +9.7% rise compared to last year). 

This means buyers have slightly more choice this spring, though CoreLogic warns that new listings are still down -3.0% from the five-year average. With more supply up for grabs, however, this tilts the market slightly in the buyer’s favour. 

• Key takeaway: Depending on where they look, buyers can afford to be picky right now. 

Auction clearance rates are meh

Over half of Australian properties up for auction are selling successfully – not great, not terrible. CoreLogic reports the national auction clearance rate in the month leading to 8 October was 65.2%, down from 66.1% in the month to 3 September. 

A high clearance rate indicates high buyer demand, so a ‘meh’ one means buyers are still showing up, just not everything sells. For a usually frantic market, a clearance rate of 65% is pretty middle-of-the-road. 

Based on raw numbers alone, though, sellers have a slight advantage at spring property auctions – good news for those hoping to sell for a profit. However, CoreLogic data also suggests many properties are selling before auction, especially in hot markets like Sydney and Melbourne. Vendors may be willing to negotiate for the right price, allowing savvy buyers to leap on something they feel passionately about without the stress of going to auction. 

• Key takeaway: Homes are still selling at spring property auctions, but buyers may have a window to jump the gun. 

Properties are taking longer to sell

CoreLogic says capital city properties took roughly 30 days to sell during the September quarter. While this isn’t enough to make vendors nervous and keen to give a discount, it is a fair amount of time. Buyers aren’t just snapping up whatever comes on sale.

Regional properties, however, took 43 days to sell on average. While regional property was a hot ticket item during the pandemic, the market has softened considerably as the focus shifts back to the cities. Location, location, location, eh? 

• Key takeaway: City places are selling faster than regional properties.

Vendor discounts have eased

Current vendor discount rates showcase the tension between sellers and buyers. Despite buyers having more choices, vendors are sticking to their guns with higher asking prices. CoreLogic reports the median vendor discount came in at just -3.8%, up from a -4.3% at the end of last year. 

A smart buyer might be able to wiggle in and get the discount they want, but this, combined with a large supply, might mean some sellers in popular markets won’t concede readily. Keep this in mind before asking for a lower purchase price. 

• Key takeaway: Vendors are more stubborn about their asking prices. 

Home value growth is lukewarm

Property value growth has flattened somewhat in the September quarter, down from 2.4% in the three months to August to 2.2%. The start of the year saw a hot regrowth in values due to cashed-up buyers, but this seems to have softened for spring. 

This could mean a few things. Maybe the cost of housing finance has caught up with first-home buyers, or a larger supply than usual has watered down demand. Either way, it’s another tepid figure for the September quarter. 

The figure is still positive, so housing values are rising. This is great news for sellers who want a nice boost in capital growth or even buyers who want to improve their home equity. If the slowdown continues, however, it could drag things away from the seller’s favour. Watch this space.

• Key takeaway: Value growth slowed slightly, which is something to watch for buyers and sellers. 

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