New research has revealed a disconnect in the current property market – while eager Aussies hoping to buy are on the hunt for spring bargains, sellers remain reluctant to bring their properties to market until things feel more settled.
According to the research from Gateway Bank, a commanding 64% of those intending to purchase a property in the next 12 months are planning to do so during the upcoming spring selling season; among millennials, that figure rises even more to 72%.
Of those home buyers, 63% believe that the impact of COVID-19 will enable them to find a bargain in the coming months.
Comparatively, just 43% of those planning to sell in the next 12 months are targeting the spring selling season, with much of the group expressing plans to hold off taking action due to concerns about falling property prices and ongoing economic uncertainty.
“The research shows there are two clear and opposing perspectives and this may lead to demand outstripping supply,” explained Gateway Bank CEO Lexi Airey.
“The impact this has on the property market over the coming months will be keenly observed.”
Of those surveyed by the bank, 46% of respondants believe home buyers will be the winners during spring, while just 18% said it’s sellers who will achieve a favourable result.
“Although home buyers consider themselves to be better placed leading into what is traditionally the busiest period for real estate, if sellers hold off, this may heighten competition among buyers for their ideal property. It could also lead to some tough negotiation around prices,” Airey added.
“COVID-19 may have delayed home buying plans for some Australians, while others believe it will give them the opportunity to fast-track their purchasing plans. That said, buyers should be financially and mentally prepared so they can move quickly should the right property be listed at the right price.”