How to buy and sell a home this spring

Prospective Aussie homebuyers are being urged to take a very different move to getting into a new home by real estate guru John McGrath.

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Research director Tim Lawless recently commented that vendors are in a strong position as they head into what will be a very active spring selling season.

I couldn’t agree more.

Buyers should prepare to compete against larger than usual crowds at open homes and auctions – and not just because spring is traditionally the busiest time of year for real estate. Both sales and rental markets in areas like Brisbane, Adelaide and Perth are still very tight.

The September Home Value Index showed these cities have some of Australia’s highest annual dwelling values and rental growth.

In Brisbane, yearly house values have risen by 6.4 per cent while house rents have increased 5 per cent, with very similar figures in Adelaide and Perth.

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It’s a seller’s market.

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This spring is also seeing much more first homebuyers as well, many of them likely encouraged by the federal government’s recent announcement of an expanded Home Guarantee Scheme.

A recent report from the Commonwealth Bank and PropTrack revealed that despite affordability challenges, there have been more first homebuyers on the market in the past year than in the 2010s, or even before the pandemic.

There’s certainly several good reasons for both new and experienced buyers to purchase this spring, with a major one being the Reserve Bank of Australia’s three rate cuts this year – the first in almost five years – to 3.6 per cent.

As a result, buyers’ borrowing capacity has increased and could rise further, with more cuts expected this year and in 2026.

Then there’s the latest data from the Australian Bureau of Statistics, which shows real wage growth is at its highest in five years while our unemployment rate has stayed at the low 4 per cent mark for four years.

So whether you’re an experienced or a first-time buyer, here are my top tips for you.

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Styling can help create an emotional attachment to a home.

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How to buy in a tight spring market

1. Be swift but smart

In the current seller’s market, you’ll likely see homes sell within days of being listed, and for more than their asking price. So be prepared to move very fast. But you should still do your due diligence before buying. Have you obtained pre-approval? Have you checked recent comparable sales? Have you explored the local area and ensured it’s close to the amenities you need, including schools? Have you organised a building and pest inspection and do you have a solicitor or conveyancer on stand by?

2. Ensure your offer is attractive but realistic

With properties selling fast right now, your purchase offer needs to stand out from the crowd. You may also only have one chance to impress the vendor like this, as they know there’s plenty more buyers to choose from if your offer isn’t attractive.

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Buyers need to be swift but smart.

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For an auction sale, making a pre-auction offer can be a good idea. If nothing else, it can save you the stress of competing at auction. But again, make sure you’ve done your due diligence and never offer more than you can realistically afford.

3. Consider off-market purchases or other locations

Off-market buying can be a great idea in any market or season but in a seller’s market, expanding your search like this is a smart plan. This type of purchase can be far less competitive than on-site buying – a key factor in today’s very driven market – plus prices can be cheaper. While exploring this option, you should also investigate different locations and property types to your preferred one.

If you’ve been waiting for the right time to buy, this spring may bring the opening you’ve been looking for. Interest rates have eased to their lowest level since April 2023, and improved borrowing capacity means greater opportunity for buyers. And, as long as you do your due diligence, a home is an asset that you’ll never regret.

How to sell in an active spring market

In a strong seller’s market, vendors can sometimes become complacent. With properties in many locations selling within days and enjoying excellent capital growth, often sellers don’t feel the need to attract buyers with a great marketing campaign or stylists.

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Vendors can’t become complacent.

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This spring, there’s certainly more confidence from a seller’s perspective. Westpac’s newest quarterly Housing Pulse report this month stated: “Buyers are perking up, price growth has lifted, auction clearance rates are rising and supply is tightening.”

The September Housing Chart Pack backed up this statement.

While the number of national sales listings was down -10.3 per cent in August, compared to a year ago, listing activity rose 9.4 per cent in this month.

“Easing interest rates, rising sentiment and stronger capital gain conditions (are) setting the stage for a cracking spring selling season,” the report noted.

There’s also been three cash rate cuts this year – with possibly more in the future – which has given buyers improved borrowing capacity, while the federal government’s expanded Home Guarantee Scheme will begin on October 1.

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If you market it right the buyers will come.

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But none of this means vendors should sit back and relax this spring. You still need to be smart when selling, just as you would in any kind of market. You definitely shouldn’t rely solely on our very active seller’s market to enjoy a swift, high sale.

So, here are my top tips for experienced and first-time sellers this spring:

1. Enjoy growth but retain prudence

In the last year alone, property values in increasingly popular, outer-ring locations have increased in every capital city. For example, house prices in Liverpool in Sydney and Bundamba in Brisbane are up by 6.5 per cent and 12.9 per cent respectively, according to Cotality’s September Mapping the Market report. While this is an excellent statistic for vendors, you still need to be prudent and circumspect in the long run.

John McGrath said buyers should seriously consider buying before selling.

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First and foremost, remember if you’re selling, you most likely will be on the cusp of being a buyer again. Your property is not the only one experiencing healthy price rises either, so your excellent capital growth can easily be eroded if you wait too long to buy back in. And for second time buyers, stamp duty can be a nasty shock if government schemes gave you a full stamp duty concession on your first purchase.

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2. Buyers are more informed than ever

Again, it’s not just you keeping a close eye on property data and statistics, especially Reserve Bank of Australia cash rate announcements. Buyers are keen to purchase but they know – or can very easily, soon find out about – comparable sale prices, locations, and other significant property details.

Don’t be fooled into thinking young people have no idea about real estate either. This group is well researched as they are rapidly learning the importance of property ownership, particularly as rents rise across the country, and they can increasingly rely on the Bank of Mum and Dad for help when purchasing.

3. Consider buying before you sell

In a seller’s market, vendors should aim to buy before they sell, as buying is generally more time consuming than selling. You’ll also have a much better idea of your current property’s ideal sale price, as in a perfect world, these funds should cover the cost of your new purchase. As a result, you won’t be left out of pocket after the two transactions.