Seller confidence is (finally) on the rise

Property prices have been consistently rising, interest rates are likely to have peaked, and the bubbly action of the spring selling season is right around the corner. 

After a year-long lull in listings, it's no surprise that sellers are welcoming more favourable conditions and returning to the market with confidence. 

Find out what the latest expert analysis and OpenAgent's own customer research say about the return of seller confidence.

Some sellers have been getting the jump on spring

In early 2023, Sydney and Melbourne set the tone for what was to come in the Australian property market this year. 

Prices in both cities began to rise and other cities and states soon followed suit, resulting in a remarkable recovery that few economists saw coming so quickly. 

Now, before the typically quiet winter months have ended, sellers in both cities have once again paved the way for a comeback as new listings have climbed above average levels for the first time since September 2022, according to CoreLogic data.

"After a challenging first half of the year, new listing volumes have begun to climb in Sydney and Melbourne, indicating seller confidence is on the up," said PropTrack Senior Economist Eleanor Creagh in a recent newsletter. 

"This has likely been supported by positive home price growth, improved sentiment, and a strong likelihood that the interest rate tightening cycle is at the peak."

The interest rate situation should be particularly positive since the end of rate hikes will inspire more confidence in buyers as well, clearing up what has been a very uncertain 18 months to this point.

Two-thirds of Australians expect prices to continue rising

At OpenAgent, we speak to thousands of Australian home sellers every month and find out whether those sellers expect property prices to rise in the next six months as part of our ongoing consumer sentiment survey. 

Back in August 2022, our Consumer Sentiment Index hit the lowest point since the start of the pandemic as interest rate pressures mounted and the wider property market downturn set in. 

Halfway through 2023, though, sentiment has bounced back as price growth has returned in earnest and vendors eye off strong selling conditions moving into spring. 

As of June, nearly two-thirds of sellers we surveyed expected that prices would continue to climb over the next six months. Just over 30 per cent believed values would remain flat while only 4 per cent thought prices would dip.

Sentiment appeared strongest in Adelaide and Perth, which is unsurprising as both cities have continued to achieve new all-time-high prices in recent months. 

Sydney has seen the sharpest recent rise in optimism, again driven by strong levels of growth, however, sentiment has risen across every state and capital city. 

It paints a positive picture for the months ahead, particularly as we enter spring and expect to see an uptick in buying and selling activity.

Where is this market optimism coming from?

A number of market factors have aligned to help lift sentiment amongst sellers during the colder months. 

After more than a year of deep uncertainty around rising interest rates, the recent pauses have provided more clarity and confidence about what's up ahead for buyers and sellers alike.

Property prices have also surged in many regions across the country in 2023 as competitive buyers have snapped up what little stock has been listed on the market.

From April to July alone, the latest CoreLogic data showed that:

• Sydney prices rose +4.5 per cent
• Brisbane was up +4.2 per cent
• Perth and Adelaide both gained +3.2 per cent 
• Melbourne increased +2.0 per cent

Dr Shane Oliver, AMP's Chief Economist, told Domain that "the demand and supply balance has overwhelmed the negative impact of still rising interest rates."

"We’ve got a very tight rental market, we have immigration levels double what they were projected in the budget late last year. There was all the talk about supply shortage that led to another round of FOMO."

Raine & Horne's Executive Chairman, Angus Raine, summarised the situation by saying "The current state of the Australian residential real estate market is looking extremely promising, with inflation seemingly under control, stable interest rates, and recovering values.

"As the market gears up for the spring selling season, it's an opportune time for both buyers and sellers to make the most of these favourable conditions."

Thinking of selling this spring? Here's what you need to do

If you're looking to get in on the action this spring selling season, it's important to be as prepared as possible in order to cut through the competition and achieve a standout result. 

Step 1: Understanding how your market is performing

Every market is different, and understanding your local market is fundamental to making the right selling decisions. Our guide to tracking market trends and data will help you to get a clear picture of how your market is performing and how that impacts you as a seller. 

Step 2: Know what your property might be worth

Getting a free home value estimate is a great way to set a foundation for your selling expectations and begin planning the path forward.

Step 3: Get a no-obligation market appraisal from a top real estate agent

Understand what your property could sell for in the current market by speaking to the top-performing agents in your suburb. Comparing top agents in your area will help you find the perfect partner for your selling journey and move towards a successful result.

Step 4: Finally, get your property listing-ready

Taking a thorough approach to preparing your home for sale is another critical step. From cleaning, decluttering, painting and performing other cosmetic renovations to home staging, photography and marketing, getting your property to sale-ready condition is a must.