New property listings fell by 6.9 per cent over the month of April, compared with March, but REA Group reported it was the second-highest number of monthly new listings since October 2019.
New listings are higher than they were in April 2020, given that Australia was entering lockdown restrictions a year ago.
All capital cities except Sydney and Darwin had observed falls in new listings during the month. In Sydney, listings rose by 1 per cent to reach the highest volumes since October 2018, while Darwin’s new listings rose by 9.3 per cent month-on-month.
All regional areas had seen a fall in new listings in April.
Active listings had also fallen by 3.2 per cent, with Hobart and regional markets (except the Northern Territory) recording record-low levels.
Regional market active listings are now the lowest they have been at any time since 2016, REA reported, reflecting demand for properties outside capital cities.
In April, there was a 1.4 per cent decline in active listings throughout the capital cities and a 5.1 per cent decrease in active listings in regional markets.
Sydney, Melbourne and Perth were the only locations with a greater number of active listings compared with April 2020, with increases of 5.8 per cent, 15.9 per cent and 3.8 per cent, respectively.
Cameron Kusher, director of economic research at REA Group, said buyer demand remains strong and continues to outpace supply.
“With demand at heightened levels, residual stock for sale continues to be sold, reducing the active supply. Therefore, active listing volumes continue to drift lower, highlighting strong demand,” he said.
“This demonstrates that despite rising prices and some steam coming out of the market, we are still seeing strong buyer activity.”
Property prices are expected to keep rising, he added, but “with a better balance between demand and supply, it’s reasonable to anticipate that the rate of price growth will slow over the coming months”.
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[Related: Home buying intentions jump sharply: CBA]
Sarah Simpkins is the news editor across Mortgage Business and The Adviser.
Previously, she reported on banking, financial services and wealth for InvestorDaily and ifa.