3 things you need to know about the spring selling season
This has been a fairly good winter for buying Australian property, thanks to ongoing low interest rates and healthy construction levels across the board. But spring is when everything really kicks into gear. The grass grows out, flowers bloom, and people's energy on the property market reaches a fervent peak.
If you're looking to trade up or down in the coming months, you're picking a good time - but so are many others. Here's what you should remember when you head out to buy in the springtime.
The market is your oyster
The spring selling season means more properties on the market, which could mean a boom year in 2015. SQM Research's stock on market report from August 4 stated that listings are usually quiet around winter time, but national stock numbers actually rose 3.8 per cent on the June figures. In Sydney, there were 22,478 properties up for sale - a whopping 18.5 per cent more than the previous month.
This suggests some incredible choice once spring emerges. If these numbers push even higher, as they traditionally do, it will give you an abundance of choice for where and how to buy Sydney property.
Which means lower prices
It is the basics of supply and demand - as more property becomes available, scarcity drops. And with it, prices come down. Housing Industry Association figures predict that the 2014/2015 financial year will have seen residential building peak at 214,450 dwellings all told.
This means we're likely to see peak supply in this cycle over the coming months. Coupled with vendors who have held off finally deciding to join the market in spring, I think many buyers will see price pressures drop and a lot of Sydney property open up to them.
We might not be at the bottom for interest rates
While the Reserve Bank holds the cash rate at 2 per cent, there is still the possibility of further cuts. Shane Oliver from AMP thinks weaker business conditions and commodity prices are likely to see the cash rate cut before the end of the year.
Should it come in September, buyers will see even more opportunity to secure affordable real estate. Those looking for property investment in Sydney are dealing with slightly higher rates due to pressure from APRA, but given the equity that has been built up from Sydney's growth, I think this market won't have any trouble navigating the big spring sales either.