Property market regaining its balance, but still favours sellers: LJ Hooker

Sellers are loosening their grip around the property market, according to research from LJ Hooker.

However, the real estate agency's latest Buyer/Seller Index has shown that the national market remains well and truly in favour of sellers.

While there was a 13% increase in stock on the market over the December quarter, buyers "easily absorbed" the new stock. The the period marked the 10th consecutive quarter deemed a sellers market by LJ Hooker.

LJ Hooker National Research Manager Mathew Tiller said the Reserve Bank's rate cut actions would have a strong influence on the Buyer/Seller Index.

"If the RBA lowers the cash rate again, then that will further stimulate buyer demand, increasing the weighting in favour of sellers,'' said Tiller.

"But a stable period of interest rates will see demand remain consistent, and continue the Index's course toward a balanced position, as new listings rise and lower economic growth impacts demand.''

According to LJ Hooker's head of real estate, Christopher Mourd, the new uptick in listings reflect seller confidence.

"There are two things currently driving property owners to sell: increased market exposure, thanks to the number of people wanting to buy; and acknowledgement that the rate of price growth in many areas has peaked, and is beginning to slow,'' said Mourd.

"Home owners wanting to upgrade to something that better suits their current lifestyle or aspirations want to transact at a time that offers the best conditions for them and, as the Index has shown, that advantage is closing.

"The feedback from our offices is that buyers are still eager and this weekend's auctions will be a good barometer of any influence of the drop in the February cash rate.''

New South Wales, Victoria, Queensland, South Australia and the Northern Territory remain sellers markets, according to the Index. Tasmania, which saw a recent price boost, moved from a buyers market to a balanced markets.

Both Western Australia and the Australian Capital Territory moved to favour buyers.