Is the tide turning for homebuyers?

house keyCould the booming Sydney and Melbourne property markets finally be starting to cool down?

There are early indicators that the property market could be seeing some stabilisation with auction clearance rates dropping as low as 71% in Sydney and 73% in Melbourne after months of being in the 80-90% range.

However, auction clearance rates don’t tell the whole story and demand is still exceeding supply – meaning that it’s still a seller’s market.

The ABS recorded an 18.9 per cent rise in real estate prices in Sydney in the 12 months to June 2015. In Melbourne a 2.9 per cent rise was seen in the same timespan, which while low in comparison is still a substantial increase in price.

The real estate market has been extremely tough for buyers this past year, however conditions have been improving over spring simply because a lot more sellers have been coming onto the market for the “spring selling season”.

Figures from CoreLogic RP Data show that September saw the largest number of new listings across Australia since March 2015.

Spring is a great time of year for buyers to find a real estate gem, without having quite as much competition as usual, but it may not last so buyers should think about getting into the market sooner rather than later.

The high amount of listings we’ve seen is expected to continue for the rest of spring, however it may slow down over the Christmas/New Year period. But even if the number of sellers wanes after spring, buyers certainly won’t. Buyers are after properties all year round so spring is a great time to look around at what’s available, especially as interest rates are still at record lows.

For buyers that are still having trouble breaking into the market, the best advice is to compromise on suburb or look at apartments over a house and build some equity. Over time you will be able to work your way up to a bigger property in your original suburb of choice.

Some are concerned that the Australian property market will start to see a downturn soon, but there’s no evidence of that just yet. When you’re looking to buy, make sure not to overblow your budget just because you’re worried you won’t get into the market, and plan to hold onto your property for the long-term.

People who buy and sell in a short period of time are generally the people who lose the most money, but if you’re buying a family home that you plan to live in for years to come then you’re more likely to make a good profit when it comes time to sell.

If you’re looking to buy or sell in the Bacchus Marsh property market and would like some advice then feel free to get in touch with one of the team at Arbee Real Estate.