Home Insights Suburbs where homebuyers now have more power than during the boom

Suburbs where homebuyers now have more power than during the boom

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Throughout 2021, historically low interest rates spurred strong demand from homebuyers, and record low levels of homes for sale made it very competitive.

Since then, the market has changed on the back of rapidly rising interest rates, greatly increasing the options for people looking for real estate in many areas.

And in some suburbs, prospects have a lot of power.

While competition among homebuyers has eased in most areas, some suburbs have significantly increased the options available to prospective buyers.Photo: Getty

Since the beginning of the year, the total number of listings for sale has increased in most parts of Australia. It’s still below pre-coronavirus levels, but an improvement from the very tight conditions we saw last year.

With each subsequent increase in cash rates, homeowners are hit with higher mortgage payments, and prospective homeowners are less able to borrow.

This slowed down the sale of homes and made more properties available for purchase on the market.

What this ultimately means is that buyers have more choice than last year, especially in the two largest states, New South Wales and Victoria.

But which areas will provide the most choice for prospective homebuyers?

To answer this question, we looked at the suburbs with the largest percentage change in total listings over the last 12 months compared to the last 12 months.

Buyers in Southside, Queensland, Suffolk Park, New South Wales and Wai Yuen, Victoria have the highest number of homes on the market, with listings growing 155%, 132% and 126% respectively. increase.

Potential buyers in Kumbalum, Shoalhaven Heads and Gol Gol in New South Wales have doubled their options in the past year.

Similar trends were seen in Winter Valley and Lucas, Victoria.

Interestingly, 14 of the 20 suburbs where buyers had the widest selection were in rural areas.

In-depth insights from PropTrack’s team of experts:

After two years of immigration to the area and a rapid housing uptake, there now appears to be some respite for buyers.

This is evident in the 12% decrease in potential buyers per local listing from October 2021 to October 2022.

The Reserve Bank is expected to raise the cash rate further in the coming months.

We expect this to continue to rebalance the market and give buyers more options into the new year.

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