One of the busiest times of year in Australia for real estate is undoubtedly spring when CoreLogic data indicates that listings increase by 18.2%. As a result, sales rose by 8.3%, with the East Coast’s cities leading the way.
Property market benefiting from the colder regions
Cities with colder winter temperatures typically benefit from the biggest spike in activity in the spring, according to CoreLogic’s head of research, Eliza Owen. Melbourne saw a 26.7% increase in listings and a 10.5% increase in sales, Sydney saw a 20.3% increase in homes on the market and a 10.4% increase in sales, and Hobart saw an average of 27.9% increase in listings and 12.3% increase in sales.
Spike in Finance Pre-Approvals Ahead of Spring
Real estate network Ray White reported a 9.7% increase in new property listings in August compared to last year. Meanwhile, Domain data across the combined capitals showed that new home listings increased to their highest on record in July and are higher annually for the fourth month in a row.
As buyers gain confidence from more listings in the run-up to spring, the brokerage group Loan Market has seen a 23% surge in financial pre-approvals compared to the previous year. Figures from July 27 to August 26, 2024, show that, when compared to the same period in 2023, Victoria had the largest annual increase in pre-approval applicants (a 40% increase), followed by Queensland (29% increase) and NSW (13%).
Loan Market broker Tommy Nguyen said that the increased number of property listings in capital city markets, following a prolonged undersupply, encouraged borrowers.
RBA’s Steady Cash Rate Boosts Borrowing Confidence
Nguyen stated that more people are looking to enter the market this spring. The Cash Rate has held steady at the last seven RBA meetings, giving buyers more certainty about their borrowing capabilities. He observed that upgraders and first-time homebuyers are leading his pre-approval inquiries. Further, he also mentioned A pre-approval is an essential first step for many people to get the attention of sellers and real estate agents. “As we see more listings and auction volumes take off from this weekend, I’d expect to see pre-approvals rise further again.”
While more borrowers are seeking pre-approvals, Mortgage Choice data recently revealed that a third must obtain multiple pre-approvals because they can’t find the perfect property before their current pre-approval expires.
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