Market's price growth rate has peaked: LJ Hooker

The rate of price growth in the housing market has peaked, with prices to grow modestly over the fourth quarter and beyond, according to LJ Hooker’s Buyers’/Sellers’ Market Index.

Sellers were in favour over the third quarter, but now it’s buyers that may be given the upper hand.

In New South Wales, Victoria and Queensland, the third quarter recorded the ninth of favourable selling conditions. This is indicated by statistics that show sales outstrip listings.

Meanwhile, in Western Australia and the ACT the markets remain balanced, while Tasmania has been in favour of buyers.

While sellers were still in favour in the third quarter, LJ Hooker national research manager Matthew Tiller said that it was important to note that the index was a record result for sellers and may have reached its peak.

“According to the ABS [Australian Bureau of Statistics], the rate of growth of finance commitments peaked in the second quarter after considerable growth over the last three years,” said Tiller.

“As price growth returns to a more sustainable level and listings come on to the market for the spring and summer selling seasons, we forecast a gradual shift back towards a buyers’ market,” he said.

Western Australia, Tasmania and ACT offer immediate future and opportunities for house growth, according to LJ Hooker head of real estate Christopher Mourd.

“LJ Hooker’s network of offices are commonly reporting that many owners are viewing the low interest rate environment as an opportunity to upgrade,’’ said Mourd.

“However, many won’t commit to listing their home until they’ve found their next home. This preference has created a shortage in supply, and heavily weighted the index in favour of sellers going to market now,” he said.

Source: LJ Hooker

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