Home buyers with plans to take action this Spring will need to be either quick and decisive or willing to expand their budgets. Fewer homeowners list their properties for sale, but the number of potential buyers is increasing. This reduced supply dynamic greater demand will bring buyers under pressure to offer greater rates or more generous conditions of purchase.
When listing numbers were up and customer demand was down, it’s a large shift from the conditions of the last two years. Since the Federal Election, buyers have returned to the market, interest rate reductions and relaxed borrowing requirements. The problem for those who are looking for a home is that the latest increase in buyer confidence has not been matched by improved sentiment among sellers according SQM Research Director Louis Christopher.
There will be more sellers than in Winter but it doesn’t look like there will be as many as in previous years. “Spring is usually the busiest time of the year for listings and this year’s Spring selling season will be a real test for the market,” says Christopher.