Why open homes are becoming quieter?

If you've been to an open home recently, you may have noticed smaller crowds than you would have seen a year ago.

According to Ray White Group Chief Economist Nerida Conisbee, buyer attendance at open homes has fallen significantly as higher interest rates, weak consumer confidence and broader economic uncertainty have caused many Australians to take a more cautious approach.

Ms Conisbee said that at the end of January, attendance was around 10% higher than the previous year. However, by the week ending 9 May, it had fallen to an average of 2.6 people per open home – 22% lower than a year earlier. By early July, attendance had declined further to 2.1 people per inspection, a fall of 43% compared to the previous year.

A more measured property market

While the federal budget created uncertainty for some property investors through changes to negative gearing and capital gains tax, Ms Conisbee said the slowdown in buyer numbers had already begun before the budget was handed down.

“This suggests the downturn is more likely to reflect the cumulative impact of higher borrowing costs, weak confidence and broader uncertainty than any single event,” she said.

The trend has been seen across the country. Sydney, Melbourne and Brisbane are now averaging around two attendees per open home; Perth and Adelaide remain the busiest markets with close to three people attending each inspection, but both remain well below last year’s levels.

What does this mean for buyers?

Although open homes are attracting fewer people, that does not necessarily mean property prices will fall.

“A property only needs one buyer, and well-priced homes can still attract strong competition,” Ms Conisbee said.

Instead, she believes the market has become less frantic, giving buyers more time to inspect properties, compare their options and make considered decisions rather than feeling pressured to act immediately.

There are also early signs the market may be stabilising, although Ms Conisbee said it is still too soon to know whether that trend will continue.

Whether you're buying in a busy market or a quieter one, preparation remains important. Let's discuss your borrowing power before you start inspecting properties.