Home auctions market predicted to boom in May
A rate cut at the next Reserve Bank meeting could result in a very busy winter, according to one expert analyst.
MORE than 2,600 homes will be going under the hammer in the first week following Anthony Albanese’s landslide win in the polls.
The number of properties brought to market has started to rebound in a big way and is set to continue through the month, according to analysts.
“New listings in April were heavily impacted by the Federal Election as well as the Easter/Anzac Day holidays, so it’s a little more difficult to read much into April’s results,” said Louis Christopher, Managing Director of SQM Research.
“That said, older listings continued to trend up, especially in our largest cities of Sydney and Melbourne.
“This is one indicator that suggests a softer Sydney and Melbourne market where vendors are still struggling to sell if they don’t meet the market.
“Going forward, with the election behind us and a majority government in place, I expect a large uplift in new listings for May as well as a pick-up in auction clearance rates.
“As for prices, we are expecting participant confidence to lift now that we past the election period and coming up to another interest rate cut.”
Asked if there would be a winter boom in the property market, Mr Christopher said it was too early to tell but added that it would depend on the on the Reserve Bank’s next rate call.
“Certainly, the month of May is going to see a large jump in activity following the quiet April,” he said.
“If the rate cut happens later this month, then it could very well be a busy winter.”
Australian Conveyancer has previously reported how the market has seen sustained momentum throughout the year, with buyers and sellers alike anticipating the rate cut in February.
They were incentivised to act before the impetus of the rate cut – and a flood of new entrants.
It’s a scenario that is expected to play out over the coming weeks.
