Who We AreMarket InsightsMessage Us

Winter property activity jumps as prices and listings rise

September 6, 2023
Andy Webb

Winter property activity jumps as prices and listings rise

The fifth consecutive month of Australian property price growth came in spite of a fresh wave of listings, CoreLogic's latest report shows

Sellers looking to beat the spring rush have been met with an uptick in buyer activity, helping to push values even higher in most capital cities. 

Now that interest rates have been paused once again, is there room for more growth this spring selling season? 

Wondering what your home might be worth?

Get a free property report with recent sales in your area and an estimated property value

Get your free property report
Get your free property report

National home values: July 2023

July saw the median Australian property price get another +0.7 per cent boost, bringing total gains for this growth cycle to +4.1 per cent. 

Sydney's blazing run slowed, but the Harbour City still returned a strong +0.9 per cent uptick for the month, while Melbourne eased back to a modest +0.3 per cent. 

Both Brisbane and Adelaide topped the capital cities with boosts of +1.4 per cent each, bringing Adelaide to a new all-time high. Perth delivered a healthy +1.0 per cent increase, too. 

Prices in Hobart held flat in July and Canberra notched down by -0.1 per cent. Darwin remained relatively steady with +0.3 per cent growth. 

The combined regional markets were again more subdued with a +0.2 per cent shift. 

CoreLogic's head of research, Tim Lawless, noted that more entry-level properties are currently spurring on price growth. 

"Some resilience in growth across the middle and more affordable end of the market aligns with housing finance data which has shown a stronger bounce back in the value of lending to first home buyers and investors over recent months," he said. 

"These segments tend to be more active across the middle to lower end of the pricing range where competition to purchase a home may be more intense."

New listings are finally rising, but so too is buyer demand

The severe shortage of listings that has persisted since September 2022 has been a key factor driving price growth this year as buyers have had little to choose from. 

July finally saw that dam break to some degree. New listings rose above average levels as sellers looked to capitalise on rising home values. 

New listings have risen above monthly average levels for the first time since September 2022. Source: CoreLogic

CoreLogic's figures painted the picture of a particularly active winter, although total stock on the market remained far below the five-year average. 

"With total stock levels still low and selling conditions reasonably strong, it may be the case that more homeowners are picking current market conditions as a good time to sell," Mr Lawless explained.

"The fact that total stock levels are still trending lower implies demand is keeping up with the increased flow of new listings coming to market."

He speculated that the rise in new listings could be attributed to a combination of sellers looking to beat the spring selling rush along with the possible signs of a rise in motivated sales due to the high interest rate environment. 

"If we do see the volume of listings increase further, which is likely as we approach spring, that could take some further heat out of the market unless that is offset by a more substantial lift in active buyers."

Thinking about purchasing a property?

Chat with Doorsteps Finance so you can buy with confidence

Speak to a broker
Speak to a broker

Banks are now largely predicting interest rates have peaked

The result of the RBA's August meeting likely had homeowners and buyers breathing a sigh of relief as the cash rate was paused for a second consecutive month. 

Forecasts from Westpac, ANZ and CBA are now all aligned in the expectation that the current cash rate of 4.10 per cent is indeed the peak for the cycle. NAB still sees the chance of one further hike occurring in November. 

All four big banks expect rates to start being cut back in the latter half of 2024. 

The cash rate worm has finally flattened and may stay at rest for the remainder of the year. Source: RBA

Last year's property price correction was primarily driven by the rapid rate hiking cycle. The end of that cycle could help to add upward pressure to property values going forward. 

"For the housing sector, the decision to hold interest rates over the past two months is positive news," Mr Lawless said.

"A growing expectation that interest rates have peaked, or are near a peak, should help to lift consumer sentiment from the recession-like lows that have persisted over the past nine months."

He concluded that "any lift in sentiment is likely to be accompanied by a rise in active buyers and sellers."

What's ahead for the Australian property market?

As the potential risk of further interest rate hikes seems to be easing, the big property question rests with listing levels as the spring selling season approaches. 

"With an increase in the flow of fresh listings coming to market, we could gradually see the supply side becoming more balanced if housing demand doesn’t pick up at the same pace," Mr Lawless explained. 

"To date, the rise in new listings has been absorbed, with total stock levels remaining well below average, but this will be a trend to watch."

CoreLogic's report notes that buyer demand is rising in tandem with growing listing rates, aided by significant levels of overseas migration and the ongoing shortage of newly built homes to help top up supply. 

It also suggests that an influx of distressed sales hitting the market is looking less likely, in part due to interest rates settling and unemployment figures holding strong. 

Overall it looks as though there's less risk of another price downturn and instead there may be solid opportunities for both buyers and sellers in the warmer months ahead. 

Wondering what your home might be worth?

Get a free property report with recent sales in your area and an estimated property value

Get your free property report
Get your free property report

This market update is written expressly for education purposes and content is based on the opinions of the authors or as otherwise cited. All information is current as at publication release and we take no responsibility for any factors that may change thereafter. Doorsteps Finance Pty Ltd ABN 27 648 541 879 and Doorsteps Solutions Pty Ltd ACN 654 334 246, the holder of Australian Credit Licence 537369 does not accept any liability or responsibility whatsoever to any error or omission or any loss or damage of any kind sustained by a person or entity arising from the use of this information.  It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.

Property reports contain property estimate data and information provided by RP Data Pty Ltd trading as CoreLogic Asia Pacific ABN 57 087 759 171 (CoreLogic) and OpenAgent Pty Ltd, which is general in nature. It is not a professional property valuation or advice to be relied upon. The actual market value of the subject property may differ. We and CoreLogic do not warrant the accuracy, currency or completeness of the data and information to the full extent permitted by law, each excludes all loss or damage howsoever arising (including through negligence) in connection with the information. You rely on the property estimate at your own risk.

Doorsteps Finance Pty Ltd ACN 648 541 879 (credit representative no.531036) is authorised under Doorsteps Solutions Pty Ltd ACN 654 334 246, Australian Credit Licence 537369. Any credit application made through Doorsteps Finance Pty Ltd is subject to approval, terms and conditions, fees and charges.

Frequently Asked Questions

No items found.

Recent Post

View All Market Insights
View All Market Insights