Market reaching balanced ground
The property market continues to move toward a middle ground for buyers and sellers, according to research from leading real estate network LJ Hooker.
While the national market still remains firmly in favour of sellers, the gap towards a balanced position has closed for the second consecutive quarter, LJ Hooker’s latest Buyer / Seller Index has shown.
LJ Hooker’s National Research Manager Mathew Tiller said despite a 13% increase in listings over the previous quarter, the undersupply of preceding periods meant buyers easily absorbed the new additions.
However, the rate of growth in new finance commitments slowed over the same period, again indicating a shift to the middle ground for buyers and sellers.
LJ Hooker’s Head of Real Estate Christopher Mourd said the recent surge in listings indicated sellers had sensed their market advantage would not remain forever.
“There are two things currently driving property owners to sell: increased market exposure, thanks to the number of people wanting to buy; and acknowledgement that the rate of price growth in many areas has peaked, and is beginning to slow,’’ said Mr Mourd.
“Home owners wanting to upgrade to something that better suits their current lifestyle or aspirations want to transact at a time that offers the best conditions for them and, as the Index has shown, that advantage is closing.’’