After spectacular price increases in 2021 across most of Australia, both buyers and sellers are wondering if and when can we expect to see the market start to cool off?
There are a number of key signs to look for that will indicate that the market is cooling? Here’s what I would consider to be some signals:
- Attendance at open homes decreasing
- Days on market increasing
- Median price growth slowing
- Reduction in advertised asking price
- Auction clearance rates declining (usually reported as a percentage)
- Bidders at auctions lower
- Pace of bidding at auctions slower
So what’s happening in our region?
We have noticed that demand for high quality property is still in strong demand in Newcastle and these properties are selling in a reasonable timeframe. While it is expected that there will be a potential interest rate increase later in the year, this has not deterred the bulk of buyers who are still actively looking and interested to get into the market now.
In Newcastle, the overall number of buyers attending open home inspections has decreased and the fast pace of bidding at auctions have slowed compared to this time last year. Price guides are becoming more realistic, with the exception of unreasonable or mislead sellers who are still expecting the market to increase and have marketed their homes for a stronger price guide. These properties are languishing on the market and taking time to sell.
Worth noting is that, this time last year sale results were achieving 15% to 20% above the guide! This is no longer the case for the majority of available listings. The properties that are still achieving strong prices are the high quality property that have been well marketed and where all the renovations and work has already been done.