This article is from the Australian Property Journal archive
HOME buyers saw their options expand in November, with the number of new properties listed for sale on realestate.com.au up 6.6% over the month, with all capitals aside from Sydney and Darwin seeing an increase.
According to the PropTrack Listings Report, new listings were up 4.3% in capital cities and 10.5% regionally.
The largest monthly increases were seen in Hobart (19.1%), Adelaide (15.2%) and Perth (6.1%). Sydney was down 1.7% and Darwin by 5.4%.
New listings are substantially lower than a year ago – a time in which listings were particularly strong – with a 21.8% gap over the 12 months. In Sydney they are 37.2% lower and in Melbourne 33.2% lower; both cities were emerging out of extended lockdowns at the same time last year.
“New listings increased across most parts of the country in November as spring came to an end, a slightly unusual outcome as October is typically the busiest month of the year in most markets,” the report said.
While new listings picked up in November, listings activity across this year’s spring selling season were slower than was typical pre-pandemic, except for 2019, which saw a quiet spring for new listings.
The total number of properties listed for sale around the country increased again, up 3.8% month-on-month in November. Compared to last year, choice for buyers has improved, with the total stock of properties listed for sale up 3.4%. Total listings increased in the month in practically all parts of the country, with only Darwin recording an extremely small decline of 0.1% month-on-month.
“The increase in choice over 2022 has been significant in nearly all capital cities. Buyers in Sydney, Melbourne and Canberra have been enjoying more options than has been typical for the prior decade. And while conditions remain tougher for buyers searching in Brisbane, Adelaide and Perth, where the number of properties listed for sale remains below pre-pandemic levels, choice has improved for these buyers over much of 2022,” the report said.
PropTrack is expecting further interest rate rises that will drag down house prices further.
“The Reserve Bank of Australia has continued to raise interest rates and is likely to continue to do so. That will further reduce borrowing capacities for prospective buyers, which is likely to place greater downward pressure on home prices in the near-term.”
The Reserve Bank has lifted the official interest rate in eight consecutive months, taking the rate from a record low of 0.1% to a 10-year high of 3.1% last week. ANZ is expecting rates to peak at 3.85% by May and an 18% peak-to-trough fall in house prices.
“Property markets will be quieter over the next couple of months as buyers and sellers pause for the typically quiet end-of-year break. Looking further ahead, the fundamentals of demand in the housing market remain solid. Unemployment is very low and has continued to move lower in recent months. Wages growth, while running slower than inflation, has started to pick up, and international migration has returned, which is adding to housing demand,” PropTrack said.
