Home buyers are in a better position and may not have to pay such a price premium this spring selling season as Sydney and perhaps Melbourne markets reach their peaks.
Sellers still rule, but as Australia's biggest auction markets head into another "super Saturday", lower clearance rates and an influx of new stock have helped strengthen the position of buyers.
New listings and total listings have climbed in Sydney where there is much more stock available for sale in the early part of the spring selling season than at the same time a year ago, CoreLogic RP Data senior research analyst Cameron Kusher says.
"Heightened stock levels at a time when auction markets are softening and value growth has shown some early signs of slowing may contribute to a further slowdown in the rate of capital gain over the coming months," Mr Kusher said.
Active buyers are afforded more choice and may not have to pay such a price premium to secure a home, he said.
Mr Kusher believes the Sydney housing market is at or slightly past its peak.
"Melbourne, the growth hasn't been quite as strong as what we've seen so it could be a similar story in Melbourne," he said.
There has been a smaller rise in new listings in Melbourne where there has been a fall in the total number of homes on the market.
Mr Kusher said potential buyers have a bit more opportunity this spring and potentially don't have to be as quick to make a decision.
"You might not have to offer as much over the list price as you have in the past and at auctions there's potentially a little less competition when you're bidding for those properties," he said.
Buyers' agent Simon Cohen said the Sydney market is still strong but some auctions are really slow while at others properties are selling but not for exorbitant prices.
"I think the market's still somewhat strong and owners are still getting good prices but it's not as heated or as strong as say it was two or four or six months ago when things were just ballistic," the managing director of buyers agency Cohen Handler said.
"I think sellers need to get their head around the fact that it isn't as heated as it was a few months ago and they shouldn't be holding out for those ridiculous prices."
Investment bank Morgan Stanley has called the peak in Australia's housing boom, predicting further falls in auction clearance rates and house price momentum.
CoreLogic RP Data's latest weekly report showed Sydney house prices are up 17.5 per cent over the past year and 14.3 per cent higher in Melbourne.
"They'll probably still rise but do so at a more sustainable pace," Mr Kusher said.
STATE OF THE AUCTION MARKETS
* National auction clearance rate 70.7 pct
* Well below this year's peak of 80 per cent in April
* Fall in clearance rates typical this time of year
* More than 2,000 auctions across capital cities past two months
* Another super Saturday (more than 1,000 auctions) in Sydney and Melbourne this weekend
* Comes before quieter AFL/NRL grand final weekend
SYDNEY
* Just over a quarter of homes sell at auction
* Clearance rates surged from 50-60 pct range in 2011 and 2012 to above 70 pct from mid-2013 onwards
* Above 80 pct for 22 consecutive weeks first half 2015
* Last weekend at 73.2 pct, around lowest for the year
* House prices up 37 pct over past 32 months
MELBOURNE
* 30 pct of homes sell at auction
* Clearance rates 65-75 pct through 2013-14
* Briefly pushed through 80 pct first half 2015
* Last weekend at 73.3 pct
* House prices up 19 pct over past 32 months
Factbox source: CoreLogic RP Data, Morgan Stanley.
Share
