Online listings flip the script in July
Monthly tracking of online property listings has revealed that this winter recorded the strongest yearly increase in new properties coming to market in over a decade.
REA Group’s PropTrack Listings Report for July 2022 showed that compared to this time last year, the total supply of properties listed for sale increased by 4.9 per cent, which is the largest year-on-year increase since 2010.
The data firm acknowledged, however, that the low number of listings from 2021 was likely due to lockdowns that impacted the major markets of Sydney and Melbourne, as well as other parts of the country.
Drastic increases in certain Australian locations certainly reflect this reality. Sydney recorded its largest ever year-on-year increase in total stock available, up 30.7 per cent this year compared to lockdown-affected levels in July 2021. Hobart, which struggled due to lack of free travel across the country, also saw a record increase over last year, with total stock 70 per cent higher in July 2022 than it was in July 2021.
Looking at this year alone, online listings also bucked the usual trends. The total supply of properties available for sale has lifted, up 0.6 per cent month on month in July. It may be a small increase, but given the month usually swings into decline because of a regular seasonal lull, the slight uptick was somewhat surprising.
PropTrack economist and the report’s author Angus Moore characterised this year’s growth as an “unusually busy winter period”.
He noted that it’s one of a number of small ways that the market is shifting in favour of buyers.
“The wave of new supply coming to market over the first half of the year, particularly in Sydney, Melbourne, and Canberra, has lifted the stock available on market and helped make conditions a bit less competitive,” Mr Moore commented.
“Selling conditions have begun to temper from their very strong levels earlier in the year. Measures of buyer demand have declined off their high levels, it is taking longer to sell homes, and auction clearance rates have fallen.”
While noting that rising interest rates were working against those looking to participate in the market, he said the industry should expect buyer numbers to remain somewhat steady.
“Further out, fundamental drivers of demand remain strong, with unemployment low, wages growth expected to pick up over this year, and international migration returning. As we look towards the spring selling season, activity in property markets around the country is expected to pick up over the next few months in line with the typical seasonal peak in activity,” he said.
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