Best buying tips for this Spring season - John McGrath

We’re in the midst of another Spring selling season, and this year, we’re seeing vendors enjoy a strong position in the market. There are good reasons for this.

According to Cotality’s October Home Value Index (HVI), a combination of lower interest rates, rising real income growth, tight labour markets and a gradual rise in sentiment, are driving property demand. And the disconnect between this demand and property supply is a recipe for solid selling conditions this Spring. Prices will likely lift further, now and into the end of the year.

Advertised stock levels are below average in every capital city are also strengthening selling conditions and adding to the momentum in home value growth. And, while recent long weekends have impacted auction volumes in some locations, the HVI revealed that national auction clearance rates have been at around the 70% mark since mid-August, further indicating the strength of the market. This is up from an average of roughly 63% through the June quarter and 62% in the three months to March.

But buyers this Spring are still confident and keen and there are good reasons for this too. As Cotality’s HVI showed, the key motive for this confidence is the Reserve Bank of Australia (RBA)’s three cash rate cuts this year. And there is a possibility we’ll see more rate cuts coming.