Key takeaways

The market is experiencing low competition among vendors due to decade-low listing numbers, leading to stronger selling conditions.

Housing values have been increasing, especially in cities like Brisbane and Sydney, but considering stretched affordability measures, the strong rate of growth may be unsustainable.

Auction clearance rates have been high, indicating strong demand and potential momentum in the market.

Some buyer demographics are highly motivated to enter the market, and if low stock levels and rising values continue, Fear of Missing Out (FOMO) may become more pervasive.

Prospective buyers face hurdles in qualifying for loans, with high interest rates and stringent assessment levels. Low consumer sentiment levels also dampen market exuberance.

Economic uncertainty and speculation on interest rate movements add to low consumer confidence levels, but a rate cut could stimulate buyer and seller activity.

Mortgage repayments remain steady, and while motivated selling and arrears may increase in the short to medium term, homeowners will likely prioritize mortgage payments.

Spring 2023 is expected to be interesting, potentially with a significant increase in listings and sales transactions. However, an increase in supply could dampen values and clearance rates.