Spring is serving up a greater number of homes for sale, with Canberra stock levels increasing by 20%, amid heightened energy amongst buyers.
Traditionally considered prime time to sell real estate, spring is generally the most popular season to transact property with warmer weather, blossoming gardens and communities coming to life after winter.
But in recent months, many homeowners have hesitated listing their properties for sale as reticent buyers hold off on their purchases with speculation of continued interest rate rises and slowing property growth rates.
MARQ partner and licensed agent Justin Taylor said spring had already shown more opportunities for buyers and an opening up of stock levels, but Canberra’s usual peak selling season was unlikely to hit the dizzy heights experienced in previous years.
“There’s always around 20% more homes for sale in spring so the volume in Canberra will still be up there with every other year, but the days on market will obviously be a bit longer,” Justin said.
“Clearance rates have just gone back to a normal 50-55%, which is reflective of a balanced market.”
“I was always taught that when clearance rates are around 40% it’s a buyer’s market and when they’re 60% and above it’s a seller’s market.”
It comes as CoreLogic data shows growth rates in Canberra have eased, with values sliding by 1.7% in August. The drop is in line with several other capitals, but is significantly lower than falls experienced in bigger cities like Sydney and Melbourne.
Justin cautioned buyers and sellers to be realistic, as the market continues through an adjustment.
“Many sellers out there are still hanging on to yesterday’s prices when the market peaked in March,” he said.
“The sellers who are onboard with that will have no problem selling their properties, but the sellers who are still hanging on to the peak market price will linger on the market for a long time.
“You have to look at the bigger picture. When prices went up 40% in 18 months and then they had a 15% correction, they’re still 25% up in the last two years, which is absolutely fantastic growth for Canberra property.”