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“Spring is not a good time to sell a home if there is a lot of competition from other sellers,” she said. “You need to assess the supply in the market before you conclude that spring is definitely a good time to sell a home.”
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“When demand issues become more pronounced, whether it’s higher interest rates or the macroprudential interventions we saw in the 2010s, those factors appear to outweigh the usual seasonal effects in the spring.”
Westpac senior economist Matthew Hassan said even though buyers appeared to be in a good position, homebuyer confidence was low due to weak affordability.
He said Sydney’s months of stock were roughly the same as its long-term average, Melbourne’s were above normal, while Perth and Brisbane were below normal.
But he said sentiment was “slightly different”. Westpac tracks survey results on whether now is a good time to buy a home and links this to affordability issues.
“Are current price and interest rate conditions conducive to buying? Clearly not, affordability is pretty poor everywhere and in that sense buyer sentiment is pretty low everywhere,” Mr Hassan said.
“Buyers may be less willing to buy, but they have a slight advantage in Melbourne and are neck and neck in Sydney, while it’s completely seller-led markets in Brisbane, Adelaide and Perth.
“It’s a buyer’s market but you’d have to be a very special kind of buyer in Melbourne and Sydney given the prices.”
In Sydney, BresicWhitney Real Estate chief executive Thomas McGlynn believes it is a seller’s market for quality properties.
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“But for those buyers who are willing to overlook some of those factors and maybe consider properties that have certain restrictions, I would definitely say there are some good buying opportunities and you might say that particular area is slowly becoming a buyer’s market,” he said.
Auction clearance rates have fallen, with more vendors having to reduce their reserve prices and bidders reluctant to push prices too high.
Open houses are still well attended. “The economy is probably making them a little nervous about doing deals,” McGlynn said.
“There are still many buyers who want to buy a property, but there is a gap between what the buyers think the property is worth and what the sellers think the property is worth.”
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In Melbourne, Jellis Craig partner Michael Armstrong said while conditions generally felt like a buyer’s market, prices for quality properties remained high.
He said Victorian Government Increased land taxes for second home owners and higher interest rates have now sent the market into a period of recalibration.
He said open house attendance was down because some hopeful homebuyers were not able to secure the mortgages they wanted.
Homes in Class A locations are in strong demand, but buyers are more price sensitive when looking for homes in secondary locations, he said.
“It feels like a buyer’s market, and there are some signs that things can definitely improve quickly,” Armstrong said.
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