Listings at the top end of the market were lower, he said, when fewer people wanted to sell their family home, as they had been during the global financial crisis.
“In times of crisis, the typical behavior we’ve seen is people stand back and wait to see what happens and wait for it to happen,” Armstrong said. “They’re probably 50-50 to sell this spring and wait until next year to see what happens.”
Although the outlook for early spring is slow, some sellers and buyers are still interested. Melbourne auction prices are higher and have remained above 55 per cent for the past three weekends.
This weekend’s 730 scheduled auction numbers are also on the rise, a 12.5 percent jump from last weekend.
Adam Bullick is selling his home in Balwyn North this spring and he’s not worried.
As managing director of housing developer Bluestar Living, he has experienced the highs and lows of the Melbourne property market.
He is selling the beautiful home he built and where his family has lived for the past five years and is hoping to buy and rebuild in the Inner East. He knows he buys in the type of market he sells.
“Everything is relative. Some people will always pay a premium for a property in a great location. Since I look again, I have to pay a premium too.
His view of the long-term view of property, as always, is that values can only increase.
Bullick sales agent Ray White Balwin director Helen Yan is expecting – like many other agents – a slower spring market.
The market was quiet as interest rates rose. It’s almost like 2019 now and people are pushing back – it’s a nervous time for people, including China’s rulers.
Although the market has cooled and fewer properties are being listed, homes still sell in reasonable condition, especially those that do not need renovations or construction work.
Buyer caution could translate into further price falls, economists predict. Westpac’s latest forecast is that prices in Melbourne could fall by 8 per cent this year and 10 per cent by 2023. ANZ has also cut its outlook and will reduce it by between 10 percent and 15 percent by the end of next year.
Westpac senior economist Matthew Hassan said spring would be a testing time for Melbourne’s property market.
“There is a meaningful correction underway and more rate hikes are coming,” Hassan said. Sales have pulled back from their highs earlier this year…and sellers may be finding that they are heading into a buyers’ market.