A few weeks out from the spring selling season, a number of metrics are pointing to stronger market conditions.
According to SQM Research, the number of listings in Brisbane increased 5.9 per cent between June and July as the Sunshine State capital started to emerge from the lockdown.
The rise in listings is a sign of improved confidence from sellers, who are starting to move forward with their real estate plans with more certainty.
Indeed, listings around the nation surged nearly 50 per cent in July from the recent lows in May, according to CoreLogic.
Likewise, real estate agent activity around the nation rebounded during July to be tracking at similar levels to the same time last year.
However, while there has been a surge in listings across the country of late, stock on market in Brisbane remains below what it was in July last year.
Why is this important?
Well, fewer listings generally mean stronger market conditions as there is less stock for buyers to choose from.
Conversely, a sharp increase in listings creates the opposite, which is looking like the case in Sydney and Melbourne where stock on market is currently 10 per cent and 20 per cent higher than the same period last year.
With Brisbane’s market starting to strengthen post-pandemic, there is every chance that the traditional spring selling season will be robust.
Part of the reason for my optimism is that Brisbane has never relied on international migrants to stimulate our property market.
Rather, we have long had a steady supply of local buyers as well as interstate migrants to drive property prices.
Of course, those interstate migrants have generally come from Sydney and Melbourne.
The thing is, while they physically can’t get here at present, that doesn’t mean they aren’t putting the wheels in motion.
In fact, our offices are regularly receiving enquiries from southern buyers who are keen to bring forward their migration plans as soon as they can head north.
Interstate migration has always had a positive impact on property prices across Southeast Queensland, which is certainly likely to be the situation again.
Indeed, some of our agents have been selling properties to interstate buyers via video chat.
Even though these buyers have not been able to physically make it to Brisbane, their desire to secure a holding here, or on the Sunshine Coast, has motivated them to take action now.
This type of activity is another reason why the spring selling season is looking stellar – along with the fact that Brisbane asking prices are also up for both houses and units compared to the same time last year.
In fact, Brisbane vendor asking prices are up 4.8 per cent for houses and 1.4 per cent for units compared to July last year, according to SQM Research.