- Inspection attendances rallied over the past fortnight
- Auction clearnace rates back above 70%
- New listings expected to increase as confidence returns
Despite a surprise interest rate hike, confidence in the property market is coming back, with new data showing that inspection attendance numbers have jumped 78% in the past fortnight.
According to Upside Realty, Victoria and Queensland are seeing the most dramatic surge in attendance at open homes, with tight stock levels and rising demand meaning buyers are now returning to the market.
Upside Realty’s Director of Sales, James Kirkland said numbers at open homes have been very promising in the past few weeks.
“We’re seeing our highest attendances in a year which is a sign that buyer demand is strong,” said Kirkland.
“Some of our agents are even seeing 30 people plus at inspections particularly in Victoria where inspection rates have risen 123% and in Queensland where they’ve risen 117%. In NSW, the average inspection attendance rate is up 38%.”
Auction markets bounce back
Auction clearance rates have also been on the rise along the east coast over the past few weeks.
According to CoreLogic, last week’s final combined capital clearance rate of 70.7% was the highest recorded since late February 2022.
Capital city auction activity is also set to buck the seasonal trend and rise 15.1% this week, with 1,948 homes expected to go under the hammer across the combined capitals. The previous week saw 1,692 homes auctioned, while this week last year, 1,672 homes went under the hammer across the combined capitals.
Melbourne is set to host the busiest auction market this week, with 842 homes scheduled for auction across the city, 18.3% above the 712 auctions held over the same week last year.
While there are 790 homes scheduled to go under the hammer in Sydney this week, up 48.5% from the 532 held this week last year when the first interest rate rise weighed heavily on vendor confidence.
Kirkland said we’re seeing heat return to the market and competition at auctions again.
“Nationally, auction clearance rates are at their highest level since mid-March 2022 before the start of the interest rate hikes.”
“Whilst there is still a shortage of properties, I think there’s also a growing sentiment amongst buyers that we’re seeing the final wave of rate rises so they’re feeling more confident at the moment to make a purchasing decision.”
James Kirkland, Upside Realty’s Director of Sales
He said a recent auction of a house at Bexley in Sydney’s south went for six figures over the reserve and saw a heated bidding war before being sold to an older couple as an investment property, highlighting that competition is back amidst a low supply of stock currently on the market.
New listings are coming
Kirkland said he believes there’ll be a wave of new listings coming onto the market in the next couple of weeks that will see a lot more opportunities for buyers.
“The rental squeeze is definitely having an impact too with many tenants deciding they’d rather have a mortgage than be at the mercy of the rental industry.”
“For some, they’ve done the numbers and realised in the long run they’re better off buying.”
He said tenants endured their biggest ever rent increases last year with national rents soaring 10.2% nationally amidst the ongoing rental crisis.
