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Property market poised for a spring boost with increased confidence and growth

August 4, 2023

The Australian real estate market is witnessing a series of positive developments, that is surely bringing smiles to the faces of owner-occupiers and investors.

Angus Raine, Executive Chairman, Raine & Horne said, “Firstly, inflation seems to be under control, leading the Reserve Bank of Australia to maintain the official cash rate at 4.1%[i] for the second consecutive month. This decision bodes well for borrowers and the overall economy.”

At the same time, CoreLogic, the property researcher, reported a 0.7% rise in the national Home Value Index (HVI)[ii] in July, marking the fifth consecutive month of housing value growth.  Leading the growth charge are Brisbane and Adelaide that experienced an acceleration in housing value growth in July, leading the pace of gains across the capitals with both capital cities recording a 1.4% increase.

At the same time, ANZ-Roy Morgan Consumer Confidence witnessed a significant increase, jumping 3.2 points to 78.4 just before the RBA's decision to leave interest rates unchanged. This surge represents the largest two-week jump in consumer confidence since April 2020, following the news from the Australian Bureau of Statistics (ABS)[iii] that inflation is softening.  

The newfound confidence in the market appears to be translating into real estate activity. According to the latest data from Raine & Horne, property appraisals in July have increased by around 15% compared to April, while property listings remain on par with those of three months ago. The number of buyers at open for inspections (OFIs) is also on the rise, approximately 10% higher than in autumn and an impressive 37% higher than during the summer.

Angus Raine believes that the market is approaching a positive tipping point, with key metrics such as real estate prices, consumer confidence, open for inspections, and appraisals gaining momentum. As a consequence, Angus anticipates, “We’re likely in for a robust traditional selling market during the upcoming spring months, with more properties hitting the market.”

He added, “Don’t forget that auction clearance rates remain at a very healthy level above 70% with Adelaide the best at almost 83% ahead of 72.4% for Sydney[iv]

As the property market's recovery continues, it presents favourable opportunities for both sellers and buyers. “Owners and investors can capitalise on rising property values, while prospective buyers can benefit from increased listings that provide additional choices and potentially less pressure to act quickly,” Angus said.

“Investors are also expected to take advantage of this positive market sentiment. With the RBA keeping interest rates steady, borrowing costs remain attractive for those looking to expand their property portfolios.”

Angus concluded, “The current state of the Australian residential real estate market is looking extremely promising, with inflation seemingly under control, stable interest rates, and recovering values.

“As the market gears up for the spring selling season, it's an opportune time for both buyers and sellers to make the most of these favourable conditions and therefore should touch base with their local Raine & Horne real estate agent to discuss the opportunities in their markets.”

For an obligation-free appraisal of the value of your home or investment property before spring, contact your local Raine & Horne office today.