Property market turning point: Is now the time to sell and buy?

It’s been an interesting 12 months for the Australian property market, with a strong turnaround in consumer sentiment, especially in our two largest markets of Sydney and Melbourne.

This has also been clearly evidenced in the higher auction clearance rates sweeping across the country - with particularly high clearance rates in Melbourne and Sydney. 

OpenAgent Data Analyst, Carson Teh, says that lower mortgage interest rates, looser credit lending restrictions and increased clearance rates has resulted in more positive market activity. But, is it time to sell?

“While there are certainly more buyers hunting for a home, which drives up demand, there’s actually less stock on the market. This is creating an atmosphere of competition for properties that are being listed - especially in markets within Sydney and Melbourne,” says Teh.

Buying and selling in the same market? Upsizers should act now

While the market is experiencing modest value gains, it’s the properties that have suffered the biggest falls in values that are now bouncing back the fastest.

If you’re a seller looking to upgrade into a bigger and better home, now might be the time to act.

“Some sellers may be holding back, hoping to get a higher price if they just wait it out. But this can be a very risky game, especially if you’re looking to purchase a bigger and better home,” says Teh. 

If you’re a seller looking to upgrade into a bigger and better home, now might be the time to act.

“If you wait, you might get a good price on the home you’re selling, but in the meantime, bigger and more expensive properties are probably increasing in value at a faster rate than your current home.”

 “You can wait, but you need to be prepared to pay even more for the bigger home - the gap could widen more so than if you acted now.”

Going to market? Auction vs private treaty in the current climate

If you’re going to market, you might be wondering what sale method is best for your home. The latest round of auction results saw the combined capital cities edge very close to an 80% clearance rate.

According to Teh, “Sydney and Melbourne are leading the charge when it comes to really high auction clearance rates.” 

“Within these cities, we can see from the latest CoreLogic data that there are certain areas where auctions are performing strongly compared to others. So if you are selling in any of these areas, choosing an auction as your method of sale makes sense,” says Teh. 

According to CoreLogic, Sydney recorded a preliminary clearance rate of 84.7%, which is the highest preliminary clearance rate the city has seen in over two years. 

“Of course we always recommend you speak to local agents in the area before making that decision. At the end of the day, a local agent will be able to advise you on what sale method is working best for properties like yours in the area they service.”

According to CoreLogic, Sydney recorded a preliminary clearance rate of 84.7%, which is the highest preliminary clearance rate the city has seen in over two years. 

Sydney areas such as Baulkham Hills, the City & Inner South, Eastern Suburbs and Inner West have all achieved auction clearance rates well above 80%. 

Melbourne as a whole returned a preliminary clearance rate of 79.7%, which was the 5th consecutive week where Melbourne’s clearance rate stayed above 70.0%.

In Melbourne, we see high performance over 80% for Inner, Inner East, Inner South and North West.

Source: CoreLogic
Source: CoreLogic

“About a month ago we wondered whether auction rates above 70% were sustainable, and here we are nearing a high of close to 80% across the combined capital cities,” says Teh.

According to Teh, spring will still be a big test for the market. “Spring has historically been known as the most popular time to sell, and it’s at this time where stock levels start to rise. It’ll be interesting to see if auction clearance rates will be as high with more stock to go around for buyers.”

Need help finding an agent to sell your home?

OpenAgent compares local agent sales and thousands of reviews to help you find the best agent

Help me find an agent

Peter Kosmina

OpenAgent customer

Help me find an agent

Find the perfect agent in three simple steps

100% Free. No obligation.

01
Research

Our platform has data on more than 30,000 agents and more than 1 million transactions. Pop in a few details and instantly access all agents in your area.

02
Shortlist

One of our experts will contact you to find out more about your property and needs, then come back to you with a personalised shortlist.

03
Choose

Now it's up to you. You have no obligation to choose an agent we recommend, but if you are interested, we'll introduce you.