Property market confidence returns with inspection numbers up 78%
Despite rising interest rates, homebuyers
are returning to the property market, with inspection attendance numbers
jumping 78% over the past fortnight according to recent data.
Upside Realty found a significant increase in open home attendance across Victoria, New South Wales and Queensland. This rise in numbers comes on the back of tight stock levels and increasing demand.
Upside Realty’s Director of Sales, James Kirkland, said buyers are showing the most confidence they have in over 12 months. “We’re witnessing our highest attendance numbers in a year, indicative of robust buyer demand,” Mr Kirkland said. “In Victoria and Queensland, some of our agents are seeing more than 30 people at inspections, with attendance rates skyrocketing 123% and 117% respectively.”
“Meanwhile, New South Wales is also demonstrating strong growth, with inspection numbers up by an average of 38%,” Mr Kirkland explained.
At the same time, auction clearance rates have been making a comeback along the east coast. CoreLogic reported a combined capital clearance rate of above 70% for the past few weeks, which is back to the same levels as March 2022.
“Nationally, auction clearance rates have hit their highest level since mid-March 2022, prior to the commencement of the interest rate hikes,” Mr Kirkland said. “Even with a shortage of properties, buyers are increasingly optimistic, sensing an end to the wave of rate rises and feeling more secure about making purchasing decisions.”
Mr Kirkland said a recent auction of a Bexley property in Sydney’s south ignited a fervent bidding war and sold for six figures above the reserve to an investment-seeking older couple. He said this underscores the return of competition amid the current low supply of property on the market.
While stock levels are at incredibly low levels, Mr Kirkland anticipates a surge of new listings over the next couple of weeks, broadening options for potential buyers. “The current rental squeeze is indeed influencing this shift, with many tenants now preferring the security of a mortgage over the uncertainty of the rental industry,” he said.
Last year, tenants faced record-breaking rent increases, with national rents surging by 10.2% amidst a persistent rental crisis. Now, more and more tenants are crunching the numbers and realising the long-term benefits of buying over renting.