Canberra buyers are out in force in time for spring rush
30 September 2015 Nicola Powell
The Canberra and Queanbeyan property market performed against winter tradition. Normally activity levels fall as the temperature drops. However, through the cooler months buyer activity was higher than the previous winter.
Buyer demand strengthened 12.4 per cent over the year but supply grew at a much slower pace of 3.4 per cent. This has helped the housing market gain momentum. With ongoing house price growth and increased auction activity, suburb records were smashed and properties snapped up quicker this winter than last year.
Detached family homes have been highly sought after throughout the year to date. The final month of winter was no different, with 422 homes sold, a massive 20.2 per cent annual increase according to the latest Allhomes data. This increased buyer activity has created a competitive market pushing the median price up 4.1 per cent over the year to $580,000.
It is a different scenario for units and apartments as new developments continue to pop up across the territory. This has given the market much needed diversity and affordability. As a result sales have grown considerably, increasing 13.1 per cent across the year, with 181 sold during August. However, the constant new supply continues to put negative pressure on the median price, falling 0.8 per cent over the year, to $395,000.
Sellers have been making the most of the competitive market as buyers gain confidence. More sellers are taking properties to auction and a higher percentage of sales have been sold at auction compared to last year. This reflects the current buyer demand. A increased number of prospective buyers has created stiff competition on auction day, resulting in higher clearance rates and helping to smash suburb records.
If stock levels remain low the market will become fiercely competitiveas the spring buying frenzy ensues. Under such conditions price growth is likely to remain strong. However, warmer weather is expected to entice new sellers into the market, which will provide the needed stock levels to service the ongoing growth in demand, particularly for family homes. This new level of supply will also help keep median price growth under control as detached house price growth has been pushed upwards by the lack of supply.
19th September 2015