Property price growth to wane over winter, experts tip
After a strong start to the year, experts are now expecting property price growth to wane over winter.
According to Archistar’s latest National Housing Market Report, “early May markets have quickly revitalised with a record rush to market by sellers keen to take advantage of still-strong buyer competition for available property.”
“Clearance rate trends however are now declining, weighed down marginally by a wave of new listings,” they said.
Going forward, Archistar warned that “price’s growth will also decline as affordability barriers rise as a result of strong prices growth pushing buyers out of the market - particularly first home buyers.”
Despite this, weekend auction markets saw record May offerings, with Sydney and Adelaide experiencing a bump up to 90 per cent from 84.4 per cent and 85.1 per cent respectively.
Sydney and Adelaide reported the highest increases in asking prices for houses over April with Brisbane falling by 1.4 per cent while Melbourne and Perth rose by the same amount.
Sydney also reported the highest monthly increase in the number of houses advertised daily for sale over April at 2.8 per cent, with rival Melbourne's total house listings falling by 15.5 per cent.
Archistar noted that the new incentives introduced by the federal budget - such as the Family Home Guarantee for Single Parents - are unlikely to significantly impact housing markets due to their narrow focus.
They also said investor activity is now exceeding the share of first home buyers in the market, though the “total market share remains well below Its long-term average.”
Archistar forecast that “most capitals will record house price growth near or above 10% this year - with unit prices also set to report their best growth results In years.”
The new National Housing Market Report report comes amid similar data by CoreLogic, who found that the week ending 16 May 2021 yielded the third busiest auction week of the year so far.
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