More listings expected to create a more balanced market
Homeowners are feeling more optimistic about the property market in 2024 and are lining up to list their homes for sale, according to agents.
This surge in listings is expected to create a more balanced property market, according to a new report from Domain.
Agents report that the volume of properties booked to go up for sale in February and March is impressive, thanks to increased confidence that interest rates have peaked and strong demand from buyers in the new year, Domain reported. Even properties that didn't sell before the Christmas period are attracting fresh interest from new buyers entering the market in 2024.
Sydney agent Ben Pike of Pulse Property notes that listings held through to the new year have received more inquiries and offers.
“Inquiries are up, inspections are up, and interest is definitely up,” Pike told Domain. “Between now and Easter, it’ll be a very busy period for listings. People are trying to get in and purchase before they think prices will go up. There are a lot more people looking who want to buy than people wanting to sell, so you’ll start to see more completion, and prices will increase.
“I think people have come to terms with the fact that rates are where they are now,” Pike said. “I don’t think people expect [them] to go up any further. If anything, they’ll stay and cut down later this year, so you’re seeing more optimism and definitely seeing more activity.”
Agents believe that the market is moving in the right direction, with increased confidence among buyers and sellers. However, the lack of new developments to meet buyer demand remains a concern and is expected to continue pushing up prices throughout the year, Domain reported.
While many agents expect the supply of new property listings to improve significantly in the coming months, certain areas still have tightly held inventory. Some sellers remain hesitant due to concerns about interest rates and market conditions.
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The positive shift in sentiment from sellers aligns with the observations of Dr. Nicola Powell, Domain's chief of research and economics. She noted that Australians are quick to react to market conditions.
“We saw the market move into recovery over 2023 as sentiment and market conditions improved, which changed potential prospective seller sentiment,” Powell said.
She said that many of the capital cities could see record prices this year, tempting more homeowners to put their houses on the market.
“The trend we saw over spring will be echoed in autumn; improved seller confidence, more sellers opting for auctions, and more sellers continuing not withdrawing from auctions and just having confidence in their campaigns,” Powell said.
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