Is it a buyer’s or a seller’s market?
The latest January Home Buyers Index report reveals who’s on top in the Australian property market.
While the pendulum swung slightly in favour of sellers over the quarter to Jan 2015, market conditions in Australia as a whole remain balanced, according to the latest Commonwealth Bank-CoreLogic Home Buyers Index buyers.
In other words, supply and demand are roughly equal. A closer look at the figures, however, reveals that conditions vary greatly in different property markets around the country.
Why is this important?
Understanding whether you’re in a buyer’s or seller’s market can give you the edge when it comes to property negotiations. In a seller’s market, where demand is high, the seller can often negotiate a higher price. In a buyer’s market, where supply exceeds demand, the opposite is true.
The Commonwealth Bank-CoreLogic Home Buyers Index measures supply and demand by comparing the number of properties for sale with the number of home loans being committed to by our customers. It scores each property market (from a national level down to regions within cities) with a figure, with 1 being an extreme buyer’s market and 5 being an extreme seller’s market.
Which markets are best for sellers?
Across the capital cities:
These cities are experiencing a high level of demand from buyers. Appropriately priced homes are selling quickly, often above list price.
Sydney stands out as an extreme seller’s market, having moved more in favour of sellers over the quarter.
Which markets are best for buyers?
With more stock than active buyers, these capital cities favoured buyers over the quarter:
Selling conditions weakened marginally in Brisbane, which is still rated a buyer’s market, though conditions are more balanced closer to the CBD.
Which markets are balanced?
In these capital cities stock levels and demand are about equal:
On average, this means that the negotiating power between buyers and sellers is even.
How do the regions compare?
Conditions in regional Australia are generally more in the favour of the buyer than they are in the capital cities.
The markets most in favour of buyers include coastal/lifestyle regions and areas associated with the resources sector.
Overall New South Wales, Victoria and South Australia have balanced markets. Queensland, Western Australia and the Northern Territory are all buyers’ markets, while Tasmania is an extreme buyer’s market.
Find out more about how the property market is performing in our January 2015 Home Buyers Index report.
This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. You should consider seeking independent financial advice before making any decision based on this information. Home Buyers Index results for ACT are not available. Data used to derive the ACT Home Buyers Index is insufficient and therefore actual results are not representative of market conditions. Commonwealth Bank of Australia ABN 48 123 123 124.