Buyers have been thrown a lifeline in the lead-up to Easter with property listings rising across the country, giving them more choice. Picture: iStock.
Embattled home hunters have been thrown a lifeline ahead of the Easter break following a rise in property listings, with the greater choice of housing set to ease buyer competition and potentially moderate prices.
Fresh data from SQM Research reveals new listings — those added to the market in the past 30 days — across the country’s capital cities increased 3.8 per cent in March and are 5.4 per cent higher than a year ago.
There was a rise in property lisings during the month of March, signalling a potential change in the market. Picture: David Swift.
The total volume of residential stock for sale across the country rose 3.5 per cent in March to 234,734 homes, reflecting a continued post-summer recovery in supply, but that figure is still 6.7 per cent down on the same time last year.
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Perth recorded the biggest surge in listings for the month, rising 12 per cent, followed by Adelaide, which added 6.6 per cent more stock to the market.
Sydney (+5.3 per cent) and Melbourne (+2.9 per cent) posted steady gains and are now both above last year’s levels.
Brisbane rose 6.3 per cent, but remains 15 per cent lower year-on-year, highlighting the severe lack of supply in that market.
Homes for sale in Melbourne rose almost 3 per cent in March and are now above last year’s levels. Picture: Andrew Henshaw.
Distressed listings remained steady in March, rising a third of a per cent to 3,512 properties, and remain 29 per cent lower year-on-year.
Western Australia recorded a notable increase of nearly 14 per cent, while Victoria and Queensland were relatively steady.
SQM Research managing director Louis Christopher said the figures suggested a gradual improvement in overall supply, but highlighted what was becoming “an increasingly complex housing market”.
“On the one hand, we are seeing a steady lift in listings nationally, and particularly strong rebounds in markets like Perth,” Mr Christopher said. “That surge in Perth listings is notable and reflects how tight that market had become.
“At the same time, the data is quite mixed. Some cities are seeing rising new listings, others are pulling back slightly, and price movements are uneven on a month-to-month basis.” “Importantly, total listings are still below last year’s levels, and distressed listings remain low.”
Louis Christopher, SQM managing director, says the housing market is entering a complex phase.
Mr Christopher said that combination continued to support prices, even with more supply coming back into the market.
“The key question over the coming months will be whether this increase in listings gathers pace,” he said.
“If it does, we may see some moderation in price growth. If not, the current supply constraints are likely to persist.”
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Rising inflation, higher oil and petrol prices, and ongoing global conflict are beginning to reshape the outlook for Australia’s housing market.
The Reserve Bank of Australia raised the cash rate for a second consecutive month in March, and economists are predicting a third hike when the central bank next meets in early May.
REA Group senior economist Eleanor Creagh said the market was shifting into a slower-growth phase, with the likelihood of flat or declining prices in some markets in the months ahead — although supply shortages could cushion the falls.
The number of homes for sale in Sydney rose again in March, which is good news for buyers. Picture: Gaye Gerard.
“Another interest rate rise, if delivered in May, and potentially another one or two in the second half of the year will put further pressure on borrowing capacity and buyer sentiment and demand,” she said.
“That will increase the likelihood of declining prices.”
Ray White chief economist Nerida Conisbee said foot traffic at open homes had been declining for several weeks, and fewer buyers were competing at auctions. At the same time, the group reported an increase in auction volumes.
“With more homes coming to market and fewer buyers actively competing, overall conditions have become more challenging,” Ms Conisbee said.
She said the coming weeks would be important in determining whether that represented a temporary pause, or the beginning of a more sustained cooling in activity.
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