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Buyers are “back in the driver’s seat”, new analysis from CoreLogic is suggesting, now that stock levels are hitting their highest point since 2012.
The property market across the country is experiencing a seasonal surge in listings of 16 per cent compared to the end of winter, according to Tim Lawless, head of research at CoreLogic.
However, these new listings are down by nearly 4 per cent, compared to this time last year, and are actually at their lowest seasonal level since 2012.
“The low level of new listing numbers can be attributed to weak vendor confidence; no surprise given housing market conditions have weakened and selling conditions have become more challenging,” Mr Lawless said.
Despite the low new stock, the overall levels of stock are up by 10.2 per cent and are at their highest point since 2012.
If the current trend continues, stock will pass the 2012 peak in the near future.
Mr Lawless said that the rise was not a panicked surge of new listings but a drop-off in demand.
“This is more about less demand which is causing a rise in relistings along with longer selling times and fewer successful sales at auction,” the head of research explained.
This is shown through the rise of days on market for capital city property sold by private treaty, which is currently up at 53 days from 42 days this time last year, according to Mr Lawless.
Discounting rates have also risen to an average of 6.5 per cent from 6 per cent last year, which to Mr Lawless indicates that vendors are facing increasing difficulty when selling property.
“More stock means more choice for buyers and harder selling condition for vendors — essentially a buyers’ market,” Mr Lawless said.
“Buyers have little sense of urgency under these conditions; they can negotiate hard, take their time to make a purchase decision, and if they feel a property price doesn’t reflect fair value, they can easily move onto the next property option.
“With so much competing stock on the market, vendors will need to be reasonable with their pricing expectations and ensure their marketing campaign is as effective as possible in order to stand out from other stock for sale.”
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