Ring the bell, spring is here!
Just as the final siren sounds on the footy finals, it’s the warmer weather and the ring of the auctioneer’s bell that heralds the return of the spring property season, or the business part of the real estate year. It’s the time of year where sellers are typically motivated to sell and resolve their housing situation before the year ends and where increased buyer numbers can make for those spirited auctions that every seller hopes for.
Fundamentally, Australian real estate exhibits fantastic buying conditions with low interest rates, good employment conditions and continued population growth under-scoring the longer term.
Capital city wrap
As we enter the spring market, conditions across Australian Capital cities are tending to moderate and indicate a two-speed market situation on a local market basis, but also contrasting across the nation. We have seen Sydney experience record growth, followed by strong growth in Melbourne, contrasted with flat to modest growth across Brisbane/Adelaide/Canberra/Hobart and then a decline in median price values in Perth.
Auction clearance rates
As we head into spring, median prices look set to remain strong across the metropolitan inner suburbs, however as we move towards the middle and outer suburbs, recent clearance rates and prices are starting to indicate a subdued market environment which is aligning closer to buyer demand.
Whilst this balance still favours sellers, this does indicate a positive sign for first home buyers seeking some relief in terms of affordability. Interestingly, despite the overall decline in the Perth median price, this market has reported the highest percentage of first home buyers at 18% of all sales in 2015, illustrating the dynamics of local markets, or sub-markets.
Suburbs to watch
To get you ready for the spring season, I have put together my current best performers on those more affordable suburbs reflecting budget and mid-market entry points to the housing market.
Adelaide budget entry suburbs
Elizabeth North (SA)
Munno Para (SA)
Smithfield Plains (SA)
Adelaide mid-market entry suburbs
Campbelltown (SA)
Golden Grove (SA)
Newton (SA)
Brisbane budget entry suburbs
Deception Bay (QLD)
North Ipswich (QLD)
Woodridge (QLD)
Brisbane mid-market entry suburbs
Aspley (QLD)
Jindalee (QLD)
Oxley (QLD)
Canberra budget entry suburbs
Gordon (ACT)
Macgregor (ACT)
Ngunnawal (ACT)
Canberra mid-market entry suburbs
Casey (ACT)
Curtin (ACT)
Gungahlin (ACT)
Darwin budget entry suburbs
Leanyer (NT)
Moil (NT)
Wulagi (NT)
Darwin mid-market entry suburbs
Alawa (NT)
Jingili (NT)
Stuart Park (NT)
Hobart budget entry suburbs
Claremont (TAS)
Glenorchy (TAS)
New Norfolk (TAS)
Hobart mid-market entry suburbs
Lenah Valley (TAS)
North Hobart (TAS)
Rose Bay (TAS)
Melbourne budget entry suburbs
Frankston North (VIC)
Melton (VIC)
Werribee (VIC)
Melbourne mid-market entry suburbs
Altona (VIC)
Essendon North (VIC)
Ringwood East (VIC)
Perth budget entry suburbs
Armadale (WA)
Greenfields (WA)
Parmelia (WA)
Perth mid-market entry suburbs
Bassendean (WA)
Maylands (WA)
Morley (WA)
Sydney budget entry suburbs
Lethbridge Park (NSW)
Rosemeadow (NSW)
St Marys (NSW)
Sydney mid-market entry suburbs
Campsie (NSW)
Kellyville (NSW)
Sylvania (NSW)