Spring is traditionally the busiest time of the year in the property world. More sellers tend to list their properties during this season, when gardens are looking their best and pleasant weather makes weekend open homes and moving house easier. (We are certainly loving the blooms in Bendigo, especially the tulips around town!)

Many families also like to purchase in spring so that they can settle into their new home before Christmas and the new school year begins.

This year’s spring property buying season is shaping up to look quite different from previous years, and it’s important to remember our metro counterparts that we tend to hear the most about in the news, can have varying markets compared to us in the regions. Here are the key trends that buyers should know about.

The property market has softened

This spring arrives against a backdrop of softer housing market conditions, with properties taking longer to sell and national home values easing. While Melbourne has felt significant pressure falling over 2% across July and August to a median of around $786,700. Regional Victoria continues to show much greater resilience.

Despite slight winter softening, regional prices remain around 5% higher than a year ago. Local markets like Bendigo and Ballarat have stayed generally stable, with solid buyer activity in more affordable areas.

While rate pressures and cost-of-living constraints are weighing on overall buyer sentiment, reduced competition gives regional buyers a stronger vantage point to negotiate on price and terms this spring.

Fewer new listings

As buyer demand softened over winter, homes took longer to sell and the number of properties available for purchase continued to build.

Across most capital cities, advertised stock is now sitting well above both last year’s levels and the five-year average. In the four weeks to 30 August, for example, total listings across the capitals were 24% higher than a year earlier and 8% above the five-year average.

Interestingly, while there are more properties available overall, the number of newly advertised homes declined towards the end of winter. New listings were 6% lower than a year ago and 8% below the five-year average.

As a result, experts expect the usual spring surge in new properties may be more subdued this year, with some vendors choosing to wait for market conditions to improve before selling.

Investors remain cautious

Following multiple cash rate increases and Federal Government changes to negative gearing and capital gains tax settings, many investors are reassessing their property plans.

Early signs suggest some are choosing to sit on the sidelines. Australian Bureau of Statistics data shows the total value of new home loans fell 5.4% in the June quarter, driven largely by an 8.6% decline in investor lending.

As a result, investors may play a smaller role in this year’s spring market, potentially reducing competition for owner-occupiers in some areas.

So, what does this mean for aspiring homeowners?

Conditions this spring may be more favourable for buyers than they have been in recent years.

With more properties available, less competition from investors and homes taking longer to sell, buyers may have more opportunity to compare their options and negotiate with sellers.

Rather than feeling pressured to make a quick decision, many buyers could have more time to do their research, attend inspections and find a property that suits their needs and budget.

While affordability challenges remain, those who understand their borrowing capacity and are prepared to act when the right opportunity arises may be well placed to take advantage of changing market conditions.

Want to chat through your finance needs?

If you’re planning to buy this spring, talk to us about your borrowing options. We can explain your borrowing capacity and any steps you should take to prepare before you start your property search. Get in touch today.

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