With COVID-19 restrictions continuing to ease just in time for the spring selling season, the property market is expecting a surge of buyer demand.
But new research shows that while buyers might be keen, sellers remain hesitant in an uncertain market.
A survey of more than 700 prospective buyers, commissioned by Gateway Bank, showed that close to two thirds plan to buy a property this spring.
Over 60 per cent of all prospective buyers expect bargains in the coming month, with less than 20 per cent expecting to walk into a seller’s market.
However, sellers are holding off for the moment. Just over 40 per cent of those with plans to offload their properties in the next 12 months plan to sell this spring.
“While many home buyers are positive about market conditions coming into the spring selling season, we are seeing sellers remain cautious,” Gateway Bank chief executive officer, Lexi Airey, said.
“The research shows there are two clear and opposing perspectives and this may lead to demand outstripping supply.”
Even the buyer’s market is divided, explains Ms Airey.
“COVID-19 may have delayed home buying plans for some Australians, while others believe it will give them the opportunity to fast-track their purchasing plans,” she said.
“That said, buyers should be financially and mentally prepared so they can move quickly should the right property be listed at the right price.”
Supply might not meet demand, which may swing things in favour of the seller.
“Although home buyers consider themselves to be better placed leading into what is traditionally the busiest period for real estate, if sellers hold off, this may heighten competition among buyers for their ideal property,” Ms Airey explained.
“It could also lead to some tough negotiation around prices.”