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Auction volumes have been indicating that vendors are returning to the market, and now a look inside a national network’s appraisal numbers shows just how big spring selling season is likely to be.
According to Mathew Tiller, LJ Hooker’s head of research, the brand has recorded a substantial increase in appraisal numbers since the end of June, jumping 24 per cent in an eight-week period compared to the previous eight weeks. The appraisal numbers have also increased 20 per cent compared to the same period last year.
“The spring market is back, after not arriving at all last year, and this is great news for both buyers and sellers,” Mr Tiller remarked.
According to the research head, this increase in interest on the part of sellers has begun to be felt in listings.
“The increase in appraisals has already had an impact on the ground with LJ Hooker listing numbers growing by 10 per cent over the last eight weeks compared to the prior eight-week period – overall it is up 8 per cent compared to the same time last year.”
He said that appraisals had increased to the greatest extent in South Australia, where they were up 35 per cent. Western Australia came in second with a 32 per cent increase, followed by Queensland (28 per cent) Tasmania (22 per cent), NSW (19 per cent) and Victoria (5 per cent).
Listing activity has also increased across most states, although it hasn’t necessarily tracked according to appraisal increases.
NSW saw the biggest increase in listings, with a 32 per cent rise over the past eight weeks compared to the same period last year. Tasmania was up 28 per cent, Victoria and Queensland both jumped 19 per cent, while Western Australia recorded an 8 per cent increase and South Australia rose 6 per cent.
Mr Tiller noted that it’s not just serious vendors looking to gauge their property’s value – uncertain conditions over the past two years had left many wondering about the position of their assets and on-the-fence about selling.
Still, he expected the stabilising of prices to encourage many who are considering a property move to strike while the iron’s hot.
The brand said that off the back of the RBA’s second cash rate hold, buyers are expected to remain active and confident. Mr Tiller added that he believes that activity will remain strong even with another rate increase in September.
“It would likely result in more listings coming to market and while it may soften buyer demand slightly, there will still be a lot of activity and this will keep prices stable,” he said.
“Recent price growth has created an opportunity for home owners looking for mortgage relief to downsize to another property and reduce their repayments. The tight employment market and low unemployment rates will ensure that buyer demand remains throughout the remainder of the year,” he added.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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