Home buyers are set for a very happy Christmas and an even better New Year as the number of properties on the market continues to rise, price growth softens and interest rates look likely to stay the same at least until the end of 2018.
“It is good news for buyers,” says Dr Nicola Powell, data scientist with the Domain Group. “Each month, we’re seeing more homes being listed for sale so that means a lot more choice available.
“Also, with the clearance rates edging lower towards 60 per cent, and a little lower demand going forward, they’re no longer having to make snap decisions in a hurry. They’ll have the luxury of choice that they haven’t had for a long time, and they can take their time over decisions.”
Overall annual growth is still forging ahead, up nine per cent on last year for houses, and 5.6 per cent for apartments, on Domain Group figures. That continued rise is encouraging more people to put up their homes for sale with the extra Christmas gift that interest rates may rise only towards the end of 2018 or in early 2019, Powell says.
Mathew Tiller, head of research at agents L.J. Hooker, says: “They are looking to capitalise on the growth that’s already happened, so we’re seeing a lot more listings on the market compared with last year. So that’s one of the reasons price growth has slowed down in the spring period.
“Also, with that rate of price growth and low wages growth, it was inevitable that those rates of growth couldn’t continue. But it’ll be great for buyers having so much to choose from and, with fewer investors in the market, there will be more choice for first-home buyers, too.”