Recent reports indicate a significant surge in new property listings across Australia, reaching levels not seen in nearly a decade. This trend has sparked interest among real estate professionals, buyers, and potential sellers alike. The REA Group’s September PropTrack Listing Report highlights that new listings rose by 2.8% in September and recorded a 10.1% increase annually. This marks the highest volume of new listings for September since 2015.
The increase in property listings can largely be attributed to a sustained period of confidence among sellers, buoyed by a pause in interest rate hikes. For the past 15 months, Sydney has led the charge with consistent growth in new property listings.
While the exact reasons behind this surge remain complex, the anticipation of interest rate cuts has played a crucial role in influencing sellers’ decisions. Many sellers are reconsidering their timelines for listing their properties as they adjust to the shifting economic landscape.
As the overall market landscape shifts, buyers’ borrowing capacities are expected to increase with another interest rate hike appearing unlikely. This environment could lead to a more favourable market for both buyers and sellers. For potential sellers facing financial burdens, any interest rate cut could alleviate those pressures, making it an attractive time to enter the market.
The increase in new property listings has been felt across the nation’s capital cities – Canberra experienced the largest year-on-year increase, followed closely by Sydney and Perth. However, not all regions have shared in this positive momentum; for example, Darwin reported an annual decrease in new listings, while Hobart also saw a slight decline.
Despite the surge in listings, the overall picture remains mixed when looking at total listings across combined capital cities, which are up by 7.7% over the year. Some markets, such as Brisbane, Adelaide, Perth, and Darwin, have experienced lower total listings, indicating regional variances in performance. Notably, regional markets have shown a more complex picture, with South Australia, Tasmania, and the Northern Territory all experiencing declines in new listings over the past year.
The impact of rising property listings on auction clearance rates is also noteworthy. Recent data from CoreLogic indicates improved clearance rates in major markets, but experts caution that this may be a temporary phenomenon. As more stock enters the market, demand may struggle to keep pace, potentially leading to a further reduction in auction clearance rates. Sellers are beginning to recognise the shifting landscape, with many reducing their asking prices to attract buyers in what is increasingly perceived as a buyer’s market.
The surge in property listings reflects a confluence of factors, including anticipated interest rate movements, high levels of equity among homeowners, and changing rental market dynamics. As the market evolves, it will be crucial for both buyers and sellers to navigate these shifts thoughtfully.
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