A hot spring selling season forecast as property market roars back to life

Ray White boss Dan White is forecasting a bumper spring selling season for Australia’s property market, after the real estate company wrote a staggering $6.9 billion in sales last month.

August’s stellar result was 14 percent higher than the same month last year and only four percent down on 2021 when record home price growth was seen.

“Our August sales results officially certified the renewed and broad-based resurgence in the residential market that we have been seeing since late May,” Mr White said.

May was when Ray White saw a small “but identifiable” lift in new listings coming to market, particularly in the eastern states, he said.

“This was very unusual as new listings normally drop in the winter months. Interest rates were still rising, and given that the expectation was for an increasingly depressed market, was this a blip? But the trend became firmer in June, and stronger again in July.”

Ray White Group listed 10,500 homes in August, up 12 percent on last year and more than 20 percent higher than 2021.

And Mr White revealed the company’s pre-listing data shows a “strong” flow of more listings in the next few weeks.

“Buyers, including potential sellers that intend to repurchase, now have a lot more property to choose from. The market is very well-stocked for spring.”

Despite an increase in supply, buyer demand remains elevated across much of the country, meaning prices are likely to continue rising in the months ahead.

CoreLogic’s latest Home Value Index, released this week, shows home prices nationally inched upwards by 0.8 percent in August – the sixth consecutive month of growth.

Since bottoming out in February, prices at a national level are 4.9 per cent higher, adding $34,000 to the median value of a dwelling.

Sydney has led the recovery trend, with a gain of 8.8% since values found a floor in the Harbour City in January, while Brisbane has also seen values up 6.2% since bottoming out in February.

Ray White’s Lower North Shore Group posted $216 million in sales in August while Ray White Quakers Hill sold 135 homes.

Mr White is expecting the coming months – traditionally the busiest in real estate – to be just as busy.

“There will be enough stock to record some big results – maybe not at 2021 levels but not too far off,” he said. “So much depends of course on the broader economic sentiment and how that influences buyer behaviour.”

One likely driver of sustained buyer confidence is the decision this week by the Reserve Bank to leave interest rates on hold, which has led many economists to believe the tightening cycle is on hold for now.