For the second year in a row, Australia’s booming property market went into a frenzy earlier than usual. However, unlike most of last year’s real estate sector, property supply and demand appears to be much more even in the last two weeks.
According to Domain’s most recent fortnightly report; Melbourne, Sydney, Brisbane and Perth all have more properties listed than at this same time last year. New South Wales and Victoria’s Capitals in particular have witnessed a massive spike in listings. In just this last fortnight, up 24 percent and 21 percent respectively.
Dr. Nicola Powell is Domain’s chief of research and economics. She believes the substantial growth in listings is due to multiple factors.
“This could be because sellers are being strategic with their market timing and listing homes for sale while selling conditions remain strong,” Dr. Powell said.
“Some may also be timing a sale before interest rates rise or further macro-prudential measures are put in place.”
Dr. Powell added that the increased supply of homes being listed should benefit potential purchasers still wanting to enter the property market.
“This increase in new listings is good news for hopeful property buyers. More properties for sale means more choice for buyers and, crucially, less competition,” Dr. Powell said.
The increase in listings has been coupled with new data that shows Sydney and Melbourne are also experiencing a decline in views per listing year-on-year, this is a great indicator of decreased buyer competition.
Brisbane’s property sector, on the other hand, has been experiencing huge gains in views per listing year-on-year. Domain’s data shows a spike of 43 percent. This figure further confirms the notion that interstate migration to the sunshine state over the past 12 months has been substantial. The news of increased listings across the country comes as Domain also recorded a finalised combined clearance rate at last week’s auctions of 74.5 percent.
This strong clearance rate further proves that demand across the nation’s property sector is still performing extremely well, despite increasing speculation that interest rate rises could be waiting just around the corner.