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Listings for residential properties across the nation have fallen despite strong market conditions, presenting an opportunity for those wanting to sell, according to an LJ Hooker expert.
LJ Hooker’s head of research, economics and business intelligence, Mathew Tiller, has revealed five reasons why new listings for residential properties across Australia remain tight despite strong market conditions.
The latest data from SQM Research showed that in July, the total number of residential property listings was at 227,135, a decline of 3 per cent.
According to LJ Hooker, the “persistent and widespread” fall suggests structural factors may be to blame, rather than seasonal.
Tiller said the first reason is limited upsizing and downsizing ability, with many home owners choosing to stay where they are, primarily because of a lack of suitable alternatives.
“Downsizers are finding it difficult to secure the right next home, while upsizers are often hesitant to move, given the higher costs associated with today’s mortgage environment,” he said.
Further, the recent high interest rates are a deterrent to many prospective sellers, particularly those who would need to borrow.
“Some home owners remain locked into low-cost loans and are understandably reluctant to give up their favourable interest rate in exchange for a more expensive one,” Tiller said.
Next, Tiller noted the pace of new housing completions has slowed greatly, despite the number of dwellings rising over the past decade.
“Builders are still grappling with labour shortages, rising costs and lengthy planning delays,” he said.
Another potential reason for the decrease in listings is property owners deciding to wait to sell their homes, wanting clear signs such as further rate cuts or strong consumer confidence.
“This hesitation has contributed to a frozen market effect, where even those with strong equity are choosing to remain on the sidelines,” he said.
The final reason is that many homes may not be marketed through traditional channels, with some properties being transacted without appearing in public listings.
“Increasingly, properties are being promoted through social media, agent databases and private buyer groups, rather than mainstream portals, reducing the overall visibility of listings,” Tiller said.
However, sellers have an opportunity to leverage the current market conditions, with listings remaining low, buyer demand high and prices continuing to rise.
“Those who list early are likely to face less competition and attract serious buyer interest,” he said.
“At the same time, strong population growth, stable employment, and rising rents are pushing more people to buy, yet new listings remain well below average. This supply-demand imbalance gives sellers a clear advantage.
“With further rate cuts expected to boost borrowing power, now is the time to act,” he concluded.
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