After the market started turning around halfway through the year, vendors in Melbourne have become more and more optimistic about property price movements.
3,306 Australian vendors were surveyed last quarter on the expectations for price movement with Brisbane vendors the most optimistic they’ve been since the beginning of 2018.
In the most recent quarter, 67% of Brisbane home sellers stated that they believed dwelling values were going to increase within the next six months.
Comparing the most recent quarter to the quarter previous, 28% more Brisbane home sellers now believe prices are going up in the coming half year.
The effects of the recent downturn in Sydney and Melbourne weren’t as drastic in Brisbane.
However, confidence hasn’t been this strong for a while.
The election results have likely played a part in this high level of confidence from vendors.
Hardly any Melbourne vendors believe that prices will be going down anymore.
At the end of last year, 17% of home sellers in Brisbane thought that prices were moving in a downward direction in the next six months.
In this most recent quarter, only 7% reported that they believed prices are going down.
These results are based on the OpenAgent Consumer Sentiment Index, a proprietary index system that measures vendor expectations for home price movement.
Vendors are asked whether they believe prices will be Strongly Up, Slightly Up, About The Same, Slightly Down or Strongly Down in their area within the next six months.
Results are then placed on a scale of -10 to +10, with 0 being a neutral view of the market.
In the first quarter of this year, sentiment fell to +2.4, the lowest value for Brisbane in the history of the index.
In the second quarter, it bounced back to +2.6 before soaring to +4.3.
This is the highest the index has been since the beginning of 2018 when sentiment was at +4.6.
Sentiment in Brisbane previously peaked at the beginning of 2017 at +4.7.
Seller expectations in Sydney and Melbourne have now surpassed those in Brisbane.
However, the Brisbane market has proven to be more stable over the past three years, especially in terms of where vendors believe prices are moving.
For those looking to purchase property, there’s only a little time to make a move before prices increase even further.
In particular, if you’re upsizing, it’s best to make the move as soon as possible before the gap in price between your current home and new home widens more.
However, if you’re downsizing, it could pay off to wait for the market to improve because the higher price you’ll get for your current home will likely outweigh the higher cost you’ll have to pay for your new home.
Guest author: Ellen Orton is the Head of Business Operations at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.