The “unusually busy” winter period saw property listings increase by 4.9 per cent on last year, the largest year-on-year increase in July listings since 2010.
REA Group’s PropTrack Listings Report for July 2022 has found that while the total supply of properties available for sale lifted by just 0.6 per cent in July, listings increased by the largest amount for 12 years when compared to the same period last year.
Indeed, the property data specialists found that the total supply of properties listed for sale increased by 4.9 per cent, which is the largest year-on-year increase since 2010.
This can partly be attributed to the fact that Sydney and Melbourne – the two busiest property markets – were in COVID-19 lockdowns for most of July 2021, which would have lowered the number of new listings at that time.
For example, national new listings were 6.5 per cent higher in July 2022 when compared to July 2021, while Sydney’s new listings were 18.2 per cent higher than in July 2021.
As such, the increase in overall supply has largely being accounted for by the fact that properties were taking longer to sell.
According to PropTrack, Sydney recorded its largest-ever year-on-year increase in total stock available, up 30.7 per cent this year compared to lockdown-affected levels in July 2021.
Hobart, which struggled due to lack of free travel across the country, also saw a record increase over last year, with total stock 70 per cent higher in July 2022 than it was in July 2021.
Looking at this year alone, online listings also bucked the usual trends. The total supply of properties available for sale has lifted, up 0.6 per cent month-on-month in July. It may be a small increase, but given the month usually swings into decline because of a regular seasonal lull, the slight uptick was somewhat surprising.
PropTrack economist and the report’s author, Angus Moore, characterised this year’s growth as an “unusually busy winter period”.
He noted that it’s one of a number of small ways that the market is shifting in favour of buyers.
“The wave of new supply coming to market over the first half of the year, particularly in Sydney, Melbourne, and Canberra, has lifted the stock available on market and helped make conditions a bit less competitive,” Mr Moore commented.
“Selling conditions have begun to temper from their very strong levels earlier in the year.
“Measures of buyer demand have declined off their high levels, it is taking longer to sell homes, and auction clearance rates have fallen.”
While noting that rising interest rates were working against those looking to participate in the market, he said the industry should expect buyer numbers to remain somewhat steady.
“Further out, fundamental drivers of demand remain strong, with unemployment low, wages growth expected to pick up over this year, and international migration returning. As we look towards the spring selling season, activity in property markets around the country is expected to pick up over the next few months in line with the typical seasonal peak in activity,” he said.
