The biggest property trends around Australia this spring revealed

Spring is the peak season for real estate sales and this year is shaping up to be one of the most interesting in recent times.

Most commentators predict that the influx of new listings will lead to an oversupply of inventory which will lead to further easing in prices.

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Whether that happens and to what extent will depend on several factors. Here are the main drivers that will affect real estate this spring.

Movement of interest rates

If the current trend of increasing interest rates by 0.5% continues until the end of 2022, we will see further price declines.

However, if the Reserve Bank of Australia slows these increases, we are likely to see smaller – or little – price declines as most markets have already seen values ​​realign.

Long term fixed rate movement

What banks do with fixed rates affects buyer behavior. If the bank lowers long-term fixed rates, it will send a message to buyers that rates will likely stop rising next year and may fall once inflation is brought under control.

Distressed seller sale

When a seller is forced to sell, they are willing to accept lower offers to move forward.

This “distressed sale price” then acts as a reference point to create a new price level – both in the suburbs and in the market.

The good news is that so far this year there has been no evidence of a hard sell, with very little unemployment.

This should continue until spring, so when a seller doesn’t need to sell, they won’t.

Provision of new registrations

At this point, the data does not show a massive influx of sellers entering the market in September and October.

Many sellers this spring may choose not to come to market because they feel like they can’t meet their price.

If there is less stock in the market, the price drops will be fewer and less severe.

Given all of this, it is reasonable to anticipate opportunities for buyers and sellers this spring.

The market could swing in favor of either side, so let’s see which direction it goes.

Tom Panos is an auctioneer, real estate coach and trainer

Originally published as Tom Panos reveals the biggest real estate trends to watch in Australia this spring