The upcoming spring selling season is expected to be particularly good in Adelaide and Perth as vendors cash in on high prices.
Head of Research at CoreLogic Australia, Eliza Owen, said that Perth and Adelaide are entering the spring season with depleted stock levels and strong buyer demand.
“Perth and Adelaide sellers are heading into the spring selling season in a powerful position, with total stock on the market at very depleted levels and there has been more than one sale for each new listing added to the market in the past few months,” Ms Owen said.
She said the urgency in these markets was evident in the days on market figures, with Perth properties selling particularly quickly.
“The median selling time for Perth dwellings was just 10 days in the three months to July,” she said.
“In Adelaide, median days on market was higher at 28, but is down from this time last year when it was 33.”
Ms Owen said spring typically saw an increase in property market activity across Australia.
“The latest CoreLogic analysis shows an average uplift of 18.2 per cent in fresh listings and 8.3 per cent for sales over the past decade, led by cities across the East Coast,” she said.
However, Ms Owen said broader economic conditions could temper the seasonal trends.
“It is possible we could see demand come under pressure from a continuation of high interest rates, slowing economic conditions and low consumer sentiment,” she said.
She said that while the smaller capitals were looking OK, Melbourne, in particular, could face challenges this spring.
“There were 5400 more new listings added to the market in Melbourne in the past three months than sales taking place,” Ms Owen reported.
In contrast, Adelaide and Perth showed strong sales figures relative to new listings, indicating favourable conditions for sellers.
Ms Owen also said there were potential opportunities in certain areas of Brisbane.
“CoreLogic analysis indicates that sellers will have an advantage this spring in Adelaide and Perth, and some of the more affordable markets of Brisbane, such as Beaudesert,” she said.
However, she warned that some markets may struggle.
“For some sellers in Melbourne, Hobart and Sydney, spring does not necessarily mean it is a good time to sell,” Ms Owen said.
She said potential sellers needed to carefully assess their local market conditions before listing.
“Prospective vendors should assess the state of their local market, as they may find there is more competition for sellers in the months ahead,” she said.
Looking ahead, Ms Owen said that this spring selling season could be a pivotal moment for the market.
“If we do see advertised stock levels rising through spring, it’s a good sign that we may see some further momentum leave the upswing in the Australian dwelling market,” she said.
