The first weekend in spring is traditionally the year’s most busy time for real estate sales, as agents and auctioneers scurry from address to address while sellers spruce up and spring clean their homes.
But fewer houses have come on to the market this year, which analysts believe could drive up demand and prices in most capital cities.
Sydney auctioneer James Keenan reported fewer new listings this year than in the recent past.
Mr Keenan said sellers were keen to offload property but were put off by not being able to upgrade immediately.
“People want to go into the market but also realise they have to have somewhere to live,” he said. “If you look at a suburb like Paddington in Sydney, there are usually signboards everywhere but right now its difficult to find one.”
A total of 1972 auctions are planned this weekend, according to data agency CoreLogic. The number of residential properties due to go under the hammer in Sydney and Melbourne is down compared with this time last year, and some agents predict price rises in pockets where stock is particularly scarce.
There are 776 Melbourne auctions scheduled and 671 homes set to be taken to auction across Sydney. But last week 2153 auctions were held in the nation’s capital cities, up from 1795 a week earlier.
Mount Waverley in Melbourne is the busiest suburb for auctions across the nation this week, with 16 residential homes set to go under the hammer. In Victoria, Craigieburn and Reservoir follow with 13 auctions each.
The spring selling season started brightly on the Gold Coast, with several major properties coming on to the market in the past week.
Ray White Surfers Paradise agent Sherry Smith is selling 43 Rapallo Avenue on the Isle of Capri and said demand from both buyers and sellers was strong as the warmer months arrived.
“There’s been a much higher number of properties come on to the market over the past week now that vendors are ready to sell,” Ms Smith said.
“People have been waiting for winter to end, the gardens are looking nicer, the properties look better so they think now is the best time to make the decision.”
Melbourne buyers’ agent Karen Price is representing three buyers today at auctions across the city who all believe it’s now or never if they want to buy.
“They’ve sat back for long enough, and they thought the market would settle a bit but it keeps on rising,” she said. “There’s no point sitting back and waiting.”
Sydney buyers’ agent Ed Flitcroft of Chalk Road has more buyers on his books, but is getting fewer deals done per month owing to the dearth of existing homes on the market.
“Where we operate we’re seeing eight or nine buyers for every one house that crops up, so we’re actually telling people to wait at the moment,” he said.
“It’s a day-by-day scenario, but supply is so critically low right now that we’re telling people it isn’t the right time to buy unless you’re absolutely certain you need to move.”
A recent report by CoreLogic said Australian residential housing prices rose 1.1 per cent during August. And in the most detailed commentary of its kind, CLSA analysts predicted tougher lending conditions meant some buyers wouldn’t be able to secure the funds they needed to settle on apartments they bought off the plan.
For the time being, buyers are still clamouring for property.
Brisbane agent Sam Mayes said properties outside the city centres were becoming more popular because of the region’s oversupplies of new apartments.
LJ Hooker New Farm agent in Brisbane Claudia Marchand said: “The city is looking better, the weather is better so more and more people are coming out to see what is happening.”
Original article published at www.theaustralian.com.au by SCOTT MURDOCH 03/9/16