The residential property balancing act: Is it a buyers or sellers market?
Property authority RP Data has recently released the May Home Buyers Index (HBI), which has implications for both those buying a house and selling.
The index is an indicator for those interested in the residential property market to see the balance between demand from buyers and supply from sellers.
Based on the ratio of home loans from Commonwealth Bank - Australia's largest mortgage lender - to the number of properties available for sale, the index can help people to decide whether it's a good time to buy or sell.
According to the report, current conditions indicate that the trend is shifting towards a balance between buyers and sellers over the course of 2013.
The even playing field means that the possibility of negotiating a better price for either party is somewhat lessened, as advertised properties are around the same level as home loans.
Results from different states are varied however, so it can depend on the location and region of the residential real estate.
Buyers in Queensland and Tasmania for example have the upper hand, as the supply of homes for sale greatly outweighs the number of home loans being funded in those states.
Sellers in the Australian Capital Territory may find that they are currently in a better position to negotiate for a good deal as the demand there is higher than the advertised housing stock.
The remaining states are seeing much more balanced levels of supply and demand.
Capital cities have their own internal markets, with just Sydney, Canberra and Melbourne being classed as seller's markets, while Brisbane, Hobart and Darwin are buyer's markets.
Both Adelaide and Perth are currently trending as balanced.
According to the Mortgage and Finance association of Australia, the confidence in the property sector is on the rise.
Half of home buyers around the country showed their vote of confidence in the market when they said that they believed residential properties will see value growths over the next quarter, according to the Home Finance Index, a confidence survey commissioned by the Commonwealth Bank/Mortgage & Finance Association of Australia.
This figure is up from the 25 per cent minority of voters who thought as much in March 2012.
Kathy Cummings of the Commonwealth Bank said that the property market was all about confidence, so while interest rates remain low and confidence continues to grow, she believes that "good times are ahead".