Market enters stable phase as buyers and listing numbers rise

In tandem with new listings, there has been an injection of fresh buyers into the market this spring. Buyer activity has risen in many areas, and with this confidence, the market will perform well going forward, according to Buxton Chelsea director and auctioneer Daniel Wright. The rise in activity was “promising and an indication that the market has picked up” and the coming months will be a good test for the sector, he noted.

In October, many agencies were busier than normal and the floodgates opened up in terms of listings in areas Buxton Chelsea operated in. “There was more supply and we listed very well in October, which is healthy,” he said. “There are new, fresh buyers looking in the market, which is a sign of confidence.”

Inspection numbers in many suburbs rose as more buyers started looking to get a feel for the market before they committed to a purchase. There was an average of one to two buyers and bidders per listing for Buxton Chelsea. 

As for homeowners, they had lacked the confidence to list their properties earlier in the year due to rising interest rates and a lack of supply. However, with strong prices for many properties and high auction clearance rates, more owners were confident to list their properties, leading to a rise in spring supply.   “Owners are now listing their homes with confidence as greater supply means they can find homes to buy after they sell,” Mr Wright said.

The market was entering a stable phase with a balance in the supply of and demand for properties, he noted.  Of the 14 new listings that Buxton Chelsea listed in the first half of October, eight were scheduled for auctions and the rest by expression of interest.

In October, weekly auction numbers continued to be strong, with the week of October 28th being Victoria’s biggest auction week this year , as 1700 homes were set to go under the hammer. “Turnkey properties and quality family homes have sold well and have strong buyer demand, but not all properties are selling at auctions,” he said. “But we are seeing a shift, and even properties that need updating or sought for land value in prime areas, are starting to get stronger buyer interest.” More buyers were also now willing to snap up a property that they could renovate and update. “With more choice, there may be less competition, but prices remain strong for certain properties in demand,” Mr Wright  said.