Strong real estate market outlook expected during Spring

Real estate market outlook in Spring/Summer is looking strong. Spring is traditionally the most popular time to buy and sell property in Australia. Buyers can always be confident there'll be plenty of properties to inspect, while sellers believe the return of warmer weather will improve their sale price.

And in normal times, they'd both be right. But with mortgage costs rising as the Reserve Bank endeavours to dampen inflation, what will the property be doing this spring and summer?

Buyers, especially, want to know whether they'll see deep discounting. On the other hand, sellers will be determined to hold their price as much as possible, while still wanting to strike a deal. It's a fascinating market.

As an experienced real estate agent in your area, we can tell you this scenario is more common than you might believe. Property prices and economic fortunes go hand in hand. You don't need to dodge a recession to keep prices healthy, rather buyers must be confident in the future.

Ready access to credit and a strong employment outlook are two of the other ingredients important to a vibrant property market. And with unemployment at 3.5%,  its lowest since 1974, buyers have reason to feel good about their futures.

So, we've outlined some of the likely market behaviours you're going to experience over the next five to six months.

Bigger selection - it' coming.

The spring campaign has begun slowly with the weather still waiting to heat up, not as many properties hit the market as expected in October. Paulette says "Perth really doesn't start to get going until the cold, wet weather is well past us."  I believe that February to May 2024 will see the greatest number of homes it the market.

Data details

REIWA states “It is pleasing to see Perth home values were relatively stable in October,” Hart said. “To put things into perspective, Brisbane’s home value index declined 2.0% and Sydney’s declined 1.3%. The main drivers for [Perth’s lower decline] are the low level of stock and our affordability, with Perth median house prices the cheapest of any capital city. There is nothing in the Perth property market right now indicating that house prices will fall drastically anytime soon.”

Careful optimism

CoreLogic, another collector of industry data, suggests that while we'll have a strong selling season, it won't compete with last year's exuberance, which broke all sorts of records. We'll see buyers more cautious due to the rising interest rate.

Seller flexibility

If you're set on moving, you'll need to consider subject sales. Buyers know the market mood has changed, and they'll be looking for sellers that are willing to negotiate settlement terms. The sensible approach is to find a win-win deal.

Cashing out

Given the continued strong values across Australia, we believe that downsizers are likely to be a strong buyer segment in WA.

Paulette Contessi 

Licensee / Director

THE CONTESSI GROUP