A property economist believes buyers who have been cautiously waiting on the sidelines are now again on the move, injecting new energy to an uncertain market.
Dr Andrew Wilson, chief economist of My Housing Market, said current sentiment and market data appeared to be "signalling that it's a good time to buy or (at least) a better time to buy".
New figures showed property values climbed 0.6 per cent in March after almost a year of falls. (Photo by Brendon Thorne / Getty Images)"Those buyers and sellers who have been sitting on their hands, particularly buyers, are now starting perhaps to realise that, with prices rising again, it's not a question of waiting until the bottom of the market occurs," Wilson said.
"I think they've actually created the bottom of the market and we're moving upwards now," he said, theorising that "there's been a shrugging off of higher interest rates, particularly over the last six months".
Wilson said broader property market trends had been on the improve since September.
"Even though prices were falling, the rate of decline was easing," he said.
"So it's not a surprise that the trend is now pulling the market back up again.
"I think it just shows that housing markets are remarkably resilient despite 10 consecutive rises in interest rates."
Compared to one year ago, median property prices in Sydney are still down around 7 per cent and Melbourne around 5 per cent.
"It's those value perceptions that tend to regenerate markets," Wilson said.
"And that can create that fear of missing out energy, which sort of offsets the fear of being involved (in an uncertain market) energy."
Auction clearance rates, typically an important measure of the market, in Sydney and Melbourne are both above 70 per cent, according to the latest figures.
In April last year, just before the RBA announced the first of 10 successive hikes, the cash rate was sitting at just 0.1 per cent.
The latest monthly data from the ABS showed inflation has softened to 6.8 per cent, still well above the RBA target of 2-3 per cent.
The RBA has been increasing the cash rate in an effort to dial in inflation.
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