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Spring market boom: Educated sellers reaping rewards
With supply limited and demand surging nationwide, sellers are poised to capitalise on a competitive market, according to an industry expert.
According to LJ Hooker’s head of research, Mathew Tiller, the current market conditions have provided sellers with a prime opportunity to maximise returns if they are willing to come to market.
Tiller said that a lack of supply in the market has given sellers all the power when it comes to attracting interest in their properties.
“The evidence of the demand is obviously the price growth we’ve seen, but also very high auction clearance rates,” Tiller told SPI.
“It’s all about leaning on the fact that there isn’t much competition between sellers at the moment.”
Recent Cotality data showed that listings nationwide have dropped, with the number of properties listed in the last 28 days falling 10.2 per cent, while total listings fell 14 per cent lower than last year.
Tiller said that sellers who were willing to put their property on the market would likely find themselves experiencing plenty of interest from potential buyers, with agents already seeing the movement emerging.
“Agents can see the evidence, and they can justify the fact that they will achieve a good price because the demand is out there,” he said.
“Vendors can be assured that they’ll achieve a pretty good price in the current market.”
According to the data, listing numbers across Sydney, Melbourne, and Brisbane have fallen by nine, 3.5, and 15.3 per cent, respectively.
Perth has seen the most significant drop in listings, down 22.5 per cent.
In comparison, only regional Victoria has managed to buck the trend, with listing numbers climbing 2.3 per cent higher than last year.
Tiller said that sellers who have prepared their property ahead of sale were the best positioned in the competitive market.
“Stock remains well below normal in most markets, so quality homes are attracting strong enquiry, competitive auctions and clean offers,” Tiller said.
“With fewer options for buyers, well-prepared listings are standing out.”
Additionally, Tiller said better weather and increased traffic played a significant role in driving sales during spring, when auction campaigns become a more popular method of sale.
“With the sun out, particularly with a home, they can present their garden well while more people are out and about looking at property,” he said.
He said the spring selling season often drives faster auctions, with clearance rates recently hitting a four-year high, as buyers’ heightened sense of urgency increases market activity.
“It makes sense particularly at this time of year as people are keen to secure a deal by the end of the year,” Tiller said.
“We have seen different levels of listing activity at different times, but definitely coming into spring, particularly in the southern states, it is a more favourable time to sell.”
Tiller said that for sellers looking to go to market, it is important to have an understanding of their home value and the surrounding neighbourhood.
“After such an extended period of growth, spring is a good time for sellers to get an appraisal to see how much equity they have in their home,” Tiller said.