Will house prices fall further when the spring sales season begins?

Listing volumes at the higher end of the market were lower, with fewer people looking to sell their family homes, he said, similar to what happened during the global financial crisis.

Charging

“In a crisis, the typical behavior that we’ve seen is that people stop and wait to see what’s going to happen and wait until after it’s happened,” Armstrong said. “People who are 50-50 over selling this spring might be waiting to see what happens and will wait until next year.”

Although the outlook for early spring is slower, some sellers and buyers are still interested. Melbourne auction settlement rates have risen, hovering above 55 per cent for the past three weekends.

The number of auctions is also on the rise, with 730 scheduled for this weekend, an increase of 12.5 percent compared to last weekend.

Adam Bulic is selling his Balwyn North home in the spring and he’s not worried.

As CEO of property developer Bluestar Living, he has already seen the ups and downs of the Melbourne property market.

Adam Bulic, CEO of BlueStar Living, is selling his five-year-old home on Balwyn North.

Adam Bulic, CEO of BlueStar Living, is selling his five-year-old home on Balwyn North.Credit:Simon Schluter

He is selling the elegant house he built and where his family has lived for the last five years, and hopes to buy it and build it again in the interior east. She knows that he will buy in the same type of market that he sells in.

“It’s all relative. Some people will always pay a premium for a property in a really good area. Since I’m looking again, I have to pay a premium too.”

His view is that the long-term outlook for the property is, as it always has been, that values ​​can only rise.

Bulic’s sales agent, Ray White Balwyn director Helen Yan, like other agents, expects a slower spring market.

“The market is calm due to rising interest rates,” Yan said. “At the moment, it’s similar to 2019 and people are holding back: It’s a nervous time for people, including Chinese buyers.”

Though the market had slowed and fewer properties were listed, houses were still selling in decent condition, he said, especially those that didn’t need renovation or construction work.

Buyer caution could translate into more price declines, economists predict. Westpac’s latest forecast is that prices in Melbourne could fall 8 per cent this year and 10 per cent in 2023. ANZ has also cut its outlook and expects falls of between 10 per cent and 15 per cent by the end of the year. next year.

Westpac Senior Economist Matthew Hassan said spring would be a testing time for the property market in Melbourne.

“There is a significant correction underway and more interest rate hikes are to come,” Hassan said. “Sales have pulled back from their very high starting point earlier this year…and sellers may find they are heading into a buyer’s market.”

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