The home at 63 Bristol St, West End, has hit the market in time for spring selling season. Picture: Supplied
As the Queensland property market heads into spring selling season, buyers will have to be quick with properties selling in less than five days in some of the region’s most popular suburbs.
Spring is traditionally the time the property market heats up and experts are predicting this year will be no different between buyers trying to beat further price rises and the expected influx of first time buyers off the back the Federal Government’s updated Home Guarantee Scheme.
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The property at 78 Pine Mountain Rd, North Ipswich, is newly listed for offers over $599,000. Picture: realestate.com.au
Data from the Reapit platform showed competition was already heating up with days on market falling in Queensland since interest rate cuts began in February.
Reapit general manager for Australia and New Zealand Simon Berglund said average days on market was an indicator of how long it takes to sell a property, and a good indicator of demand.
“May’s rate drop had far less impact on the speed of transactions (than February’s), and this is likely to be the case in the next couple of months following August’s rate drop,” he said.
“However, the time it takes to sell a property is likely to speed up in the affordable end of the market come October, with the expansion of the 5 per cent deposit Home Guarantee Scheme.
“Pent-up demand from first homebuyers will be unleashed, and in more affordable and some mid-tier markets we can expect to see fewer days on market, as well as an increase in prices, since the housing supply is still constrained.”
The Reapit data revealed the Queensland average days on market was sitting at 49 in August 2024, 44 in February and 46 last month.
Across the state there were 78 suburbs with days on market sitting at or below 10 in August.
In SEQ, Sadliers Crossing in Ipswich recorded a zero days on market while Molendinar on the Gold Coast was sitting at three.
Deebing Heights, Lawnton and White Rock averaged four days on market, Marsden was at 4.5 and Glenore Grove, Northgate, Ooralea and West Woombye were at five.
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The home at 8 Belair St, Moorooka, is on the market for offers over $950,000. Picture: realestate.com.au
Mortgage Choice Ormeau and Yarrabilba principal broker, Deslie Taylor said she was already working with SEQ first homebuyers preparing for October 1, while other buyers were trying lock down a property before that deadline.
“I’m seeing people who are really quite stressed at the moment, given the new government incentives coming in for first homebuyers,” she said.
“They’re concerned the market will see that bit of a spike.
“That’s the urgency people are starting to feel in the market, but there is also so much more optimism compared to last spring.
“With interest rates coming down, even though it’s a minimal rate cut, it’s a positive sign and people have the confidence to start looking for property again.”
Ms Taylor said buyers wanting to beat the spring season rush or take advantage of the first homebuyer incentives should already getting their ducks in a row.
“They need to have all their paperwork into their broker so their pre-approvals can be done, and they should be starting to do their homework now,” she said.
Place New Farm lead agent, Alex Rutherford also predicted this spring selling season in SEQ would be a little calmer than previous years.
“It won’t be as extreme with that hyper energy of trying to jump in before the first open home and making offers before you’re seen it,” she said.
But the experienced agent cautioned the market would move quickly once the weather began heating up.
“Spring puts people into ‘go mode’,” she said. “People feel better, the sun is coming up earlier, there’s the sound of birds in the morning, the smell of magnolias in the air and everything is green and alive. It gives people the feeling that it’s the right time to buy or sell.
“It’s also this golden window of three months before the Christmas period.”
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Place New Farm lead agent Alex Rutherford. Picture: Supplied
Ms Rutherford this year had all the makings of a strong spring for both buyers and sellers.
“There is a bit more confidence in the market and a bit more certainty.
“Due to the interest rates that have just fallen, we’ve noticed the amount of buyers coming through are stronger than this time last year.
“We appear to have more stock coming on this spring, largely due to the dwindling supply that occurred earlier this year, so buyers have more opportunities to buy.”
Research agency Canstar noted the RBA’s three cash rate cuts this year increased an average income earner’s borrowing capacity by $35,000.
While ABS data for the June quarter revealed the average new loan size for Queensland owner-occupiers hit a record high of $662,000, up 12 per cent annually.
Canstar’s data insight director, Sally Tindal said rut cuts gave borrowers more bang for their buck.
“This third cash rate cut is likely to encourage more buyers into the market, with further confirmation the days of higher interest rates are now firmly in the rear-view mirror,” she said.
“For buyers, however, lower interest rates could tempt them to borrow more from the bank, and that’s not necessarily a good thing.
“Any boost in borrowing capacity should be taken with a healthy dose of caution.”
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The house at 164 Archer St, Woodford is for sale fore offers over $799,000. Picture: realestate.com.au
While a further rate cut in September could increase borrowing capacity of a single income earner by another $12,000 at the start of spring selling season, Canstar predicted that was off the cards as the consumer price index (CPI) had lifted.
Ms Tindal said the monthly CPI indicator saw a sizeable hike of 2.8 per cent in July – the first rise in seven months.
“The possibility of a September cash rate cut was a long shot at best, however, this round of monthly data squashes pretty much all hope of back-to-back moves,” she said.
“The Board has confirmed, at least one more cash rate cut is likely, however, it will want to see the next round of quarterly CPI results before pulling the trigger again.”
Ms Tindal said despite inflation nudging up, lenders were still competing for new home loan customers.
“The new lowest variable rate in our database (is) an ultra-competitive 4.89 per cent,” she said.
“The Canstar database shows almost 30 lenders currently offer at least one variable rate under 5.25 per cent for owner-occupiers paying principal and interest.”
The home at 7 Cathie St, Clontarf, is on the market for offers over $875,000. Picture: realestate.com.au
Queensland first homebuyers looking to lock down a property during the spring selling season will be able to access the Federal Government’s Home Guarantee Scheme from October 1.
The scheme will allow people to buy a property with a 5 per cent first deposit and eliminate lender’s mortgage insurance payments.
There is no income cap and the Government has increased property price cap in Brisbane and regional centres from $700,000 to $1m.
This is in line with the current median house price in Brisbane, which broke through the million-dollar barrier in June.
PropTrack data showed the river city hit a new home price record for the 33rd consecutive month in August, up 0.6 per cent to $936,000.
The average cost of a Brisbane house increased 0.52 per cent in August to a median of $1.085m.
PropTrack Senior Economist Eleanor Creagh said while the Brisbane property market was one of the best in the country, the paced had begun to normalise.
On the Gold Coast, the median house price was sitting at $1.32m.
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