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The number of new homes on the market in capital cities this spring is down on last year, but there is a rise in buyer activity.
In the latest CoreLogic Property Pulse, head of research Tim Lawless pointed out that although the number of new listings is up by 56 per cent since winter, newly advertised stock has not been this low since CoreLogic started tracking listings in 2007.
“With fresh listings at a lower than normal level and buyer demand rising, the total number of advertised properties available for sale is also tracking at historic lows, down [by] 12.4 per cent nationally compared with last year and the lowest reading for this time of the year since 2009,” Mr Lawless said.
The number of new listings in each capital was down in November, compared to the same time last year.
Darwin saw the most significant drop, with new listings down by nearly 40 per cent, followed by Hobart and Perth, who both recorded a substantial reduction of 23 per cent.
However, looking at the total number of listings, Sydney was down by 23 per cent on a year ago, followed by Perth, down by 17 per cent and Melbourne with 16 per cent fewer homes on the market.
“The low number of spring listings likely reflects a combination of factors,” Mr Lawless said.
“In markets where housing conditions have been weak, like Darwin and Perth, a lack of vendor confidence is understandable. Selling conditions have been tough in these markets since 2014, and prospective home sellers are likely wary of the challenging selling conditions, where homes are taking a long time to sell, discounting rates are high and properties are often selling for a lower amount than what they were purchased for.”
However, the fall in overall listings in Melbourne and Sydney was more surprising.
“One reason could be related to overall consumer confidence remaining low. Selling a home, as well as buying a home, is a high-commitment decision that is harder to make when confidence in the overall economy and future household finances is low. Another factor relates to the speed of the market recovery,” he said.
Mr Lawless pointed out that it was only five months ago since property values were still broadly falling.
He acknowledged it does take a lot of effort from home owners to commit their property to market, such as finding the right agent and preparing a marketing campaign.
“Considering this, if selling conditions remain strong through early summer, we could see the market being tested with a larger number of listings through early December or the first quarter of next year,” Mr Lawless said.
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