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Spring listings figures indicate that the Australian property market is back to business as usual after last year’s slump.
Data from PropTrack reveals that the number of new listings nationally on realestate.com.au increased over the course of October, in line with the typical spring peak. New listings for the month were 17 per cent higher than September and, significantly, 15.7 per cent higher than this time last year.
PropTrack senior economist and the report’s author, Angus Moore, noted that the month’s listings data indicate that the real estate industry is recovering from the slump of 2022.
“Property markets surged in October for the typical mid-spring peak in activity. This year’s spring selling season has been stronger than last year’s so far, particularly in Sydney and Melbourne,” he said.
Vendor confidence appears to have returned in the country’s two largest cities, which drove the surge in national listings. Sydney reported a 32.5 per cent year-over-year increase in homes on the market, while Melbourne hit a similar figure at 31.7 per cent.
“Both Sydney and Melbourne saw a much busier October than last year, which, in part, reflects how quiet spring was in 2022. Activity is now on par with what has been typical for mid-spring over the past decade,” Mr Moore noted.
According to the economist, listing numbers in October reflect vastly improved selling conditions, as vendors feel more certain about interest rates and more confident that they can get the price they want for their home.
The delay tactics deployed by some vendors last year has resulted in an even bigger spring selling season among some capitals. For buyers in Melbourne, Sydney, Canberra and Hobart, choice is particularly strong. All four cities had more total properties available for sale in October than has been typical in the past decade. Only Perth bucked the trend, recording 7.3 per cent fewer new listings year-on-year.
Regional areas have also experienced a boost, with new listings increasing 9.4 per cent month-on-month to be 11.1 per cent higher than a year ago.
According to Mr Moore, listings are likely to stay elevated now that prices have rebounded.
“Of particular note, property prices have climbed every month in 2023, and continued to do so in October. That means prices nationally have completely recovered last year’s falls,” he remarked.
But he noted that the continued performance of the real estate market relies heavily on how the RBA proceeds early next year.
“The RBA increased interest rates a further 25 basis points in November after four months without a change. While markets are expecting only a modest chance of further increases, they remain a possibility. Any further increase in rates could negatively affect buyer and seller sentiment.”
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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