The Property Market – August 2023

PRICE MOVEMENTS

Property markets have been a bit lacklustre since May last year when interest rates began their quick march upwards. Price growth began at the start of the year, however the number of new listings continued to fall. This month, however, we’re seeing the number of properties coming to market begin to increase, setting us up for a much better spring selling season.

PROPERTIES COMING TO MARKET

While price growth is leading to more people coming to market, it also appears that investors are selling at a greater rate than normal. While it’s impossible to measure exactly how many current sellers are investors, our auction data does show an uptick in investor selling activity. Anecdotally, we can confirm that more investors are coming to market. While higher interest rates are likely a driver, it’s also likely that increasing negativity towards investors is also a factor. A loss of investors will create further problems with rental availability.

AUCTION ACTIVITY

The June rate rise didn’t just flow through to a slight downturn in pricing, it also led to a stabilisation in bidding activity at auction. The number of active bidders reduced in July.

There are a lot of push/pull factors influencing property markets for the remainder of the year. On one hand, interest rates remain high and the number of properties coming to market is increasing which will put downward pressure on prices. Conversely, inflation is starting to come down and it’s likely interest rates are close to peak. We’re seeing strong growth in population, a fundamental driver of property demand. All of this is leading to greater confidence among buyers.