How buyer behaviours have changed in 2024

So far this year we've seen property prices continuously break national records, but there is a growing diversity between our cities and states. 

As some of those trends have shifted, a number of differences have emerged in the way buyers are approaching the market. 

We spoke with Sydney buyer's agent Penny Vandenhurk about the current state of the market, how buyer preferences are changing, and what to expect from the upcoming spring selling season.

A more balanced market has emerged

The years following the onset of the pandemic were some of the most wildly volatile Australian property has seen, bringing historic highs and sharp lows. 

Overall, stock levels remain low, however with interest rates remaining unchanged so far in 2024 and momentum holding relatively steady across many markets, Penny said there's less urgency and fear driving Sydney property, with both buyers and sellers acting more on their own terms. 

The same might not be said for still-booming cities like Perth, Adelaide and Brisbane where prices continue to climb at a blistering pace, but Sydney has seen a "heightened" seasonal effect from the annual winter lull. 

Penny pointed out that "when there is a property that ticks a lot of boxes for a lot of people, it goes nuts," but for the most part, the market has returned to a more balanced state rarely seen over the past four years. 

"We've come out of this weird era where life was so unpredictable and constrained. I guess this is just the new normal."

What are buyers looking for in 2024? 

There have been some interesting shifts in buyer behaviours and priorities this year according to Penny. 

A move towards affordability is one of the more obvious ones. CoreLogic has been reporting that the cheaper end of the market has been outperforming, and she said it's "absolutely true, that portion of the market is growing."

Townhouses in particular are finding favour with buyers looking to spend a bit less but get the kind of size and location they're looking for. 

Unrenovated properties are also starting to get a lot more attention. Buyers had previously been very wary of homes that need work as inflation pushed the cost of trades up dramatically, but "this year that mindset has really shifted."

With more stability around building costs, that appetite to take on a new project is seeing renewed interest in fixer-uppers which may give sellers more flexibility when considering how to bring their property to market. 

The need for an additional study is something that's also slipped from many buyers' must-haves in 2024. 

The pandemic made that extra working-from-home space practically essential for many Australians, but as workers have transitioned back to the office, "the allure of that has dropped off a bit."

Otherwise, buyers are still valuing many of the aspects they've always valued: "Natural light, access to transport, good floorplans that make sense, proximity to cafes and restaurants."

What's expected for this year's spring selling season? 

There are a range of predictions out there for the upcoming spring after what's been a mixed winter around the country. 

On the national level, PropTrack's senior audience analyst Karen Dellow said that the current winter "bodes well for the spring selling season starting in a few weeks, and with expectations of no further interest rate rises this year, buyers are likely to be out in force and remain active throughout the remainder of the year."

AMP's chief economist Shane Oliver noted that "Clearance rates are a bit down from the highs [at the start of the year], but the basic picture looks to be that there is still a supply shortfall relative to the underlying demand for housing.

"This will continue to drive activity and sustain the market this season, despite the high-interest-rate environment."

But CoreLogic's Eliza Owen warned that "If we do see advertised stock levels rising through spring, it’s a good sign that we may see some further momentum leave the upswing in the Australian dwelling market."

In Sydney, Penny said she's expecting a more subdued spring than usual with fewer listings coming to the market. 

"I think there will be an uptick in spring, but I think it will be soft compared to other years."

She noted that there may be an uptick in buyer urgency later in the season as buyers look to secure a home before Christmas, but it could be a slower start to spring than is typical.

Thinking of selling in 2024? 

If you're still looking to get in on the action this year, it's important to be as prepared as possible in order to cut through the competition and achieve a standout result. 

Step 1: Understanding how your market is performing

Every market is different, and understanding your local market is fundamental to making the right selling decisions. Our guide to tracking market trends and data will help you to get a clear picture of how your market is performing and how that impacts you as a seller. 

Step 2: Know what your property might be worth

Getting a free home value estimate is a great way to set a foundation for your selling expectations and begin planning the path forward.

Step 3: Get a no-obligation market appraisal from a top real estate agent

Understand what your property could sell for in the current market by speaking to the top-performing agents in your suburb. Comparing top agents in your area will help you find the perfect partner for your selling journey and move towards a successful result.

Step 4: Finally, get your property listing-ready

Taking a thorough approach to preparing your home for sale is another critical step. From cleaning, decluttering, painting and performing other cosmetic renovations to home staging, photography and marketing, getting your property to sale-ready condition is a must.