New research has lifted the lid on Australia’s real estate market, letting home-owners-to-be know where the buyer’s markets are.
The Commonwealth Bank-CoreLogic Home Buyers Index has been released, announcing that Brisbane is the biggest capital city with conditions that favor buyers.
Buyer’s markets exists when the number of homes for sale outweigh the number of new mortgages being taken out, according to criteria used by the home buyer’s index.
The index provides an indication of how well market conditions are suited to buyers or sellers.
The index found the best conditions for buyers were in towns in Queensland’s southwest, such as St George, Roma, Charleville and Cunnamulla.
According to realestate.com.au, a two-bedroom house in St George sold for just $90,000 in September. A three-bedroom house in the same area sold for $130,000 in March.
Queensland managed to snag three spots in the top 10 “extreme buyer’s markets”, which also included Wide Bay Burnett — covering Bundaberg, Gympie, Hervey Bay, Kingaroy and Maryborough — in third spot nationally, and West Moreton (Lockyer Valley, Scenic Rim, Somerset and parts of Ipswich) ranked ninth.
“Queensland dominates the list for the best markets for buyers nationally,” the report says. “There are no capital cities listed as best buyers’ markets and most are coastal / lifestyle markets or those linked to the resources sector.
“All of those areas listed are seeing a heightened level of homes available for sale relative to current demand.”
Although it didn’t make the list of the top 10 “extreme buyer’s markets”, Brisbane was the biggest capital city that could be described as a buyer’s market. The report found that selling conditions across Brisbane have weakened marginally over the past year and the past three months, but overall the city remains a market that is in favour of buyers rather than sellers.
Buyers still hold greater power when it comes to negotiating the purchase of a home, with most sellers having to reduce their initial list price in order to achieve a sale in Brisbane.