New listings give buyers upper hand

This year’s continued strength in new listings has given buyers more choice and eased the level of competition with an improved balance between supply and demand, according to PropTrack’s monthly housing market report.

While sales volumes peaked in December last year, the first quarter of 2022 tracked similarly to the first quarter of last year, likely buoyed by buyers racing to the market ahead of rate rises.

But, as the current cycle of exceptional price growth and heightened buyer demand eases, following last week’s cash rate rise the picture shifted in April.

The report revealed sales volumes were down 15 per cent, compared to April 2021, indicating that trend would continue as reduced mortgage affordability weighs on buyer demand.

Another factor driving the “normalisation of stock” on market, particularly in Sydney, is the strength in new listings not being matched with the same strength in buyer demand.

With more supply and fewer competing bidders, the median days on-site have climbed (from 33 days in March to 35 days in April) and will likely continue to do so as the year progresses.

In every state and territory except Western Australia and the ACT, sales volumes slipped when comparing April this year with last, with the largest declines in NSW (down 24.5 per cent), Tasmania (down 22 per cent), and Victoria seeing a drop of 18.5 per cent.

Meanwhile Western Australia and the ACT saw sales volumes rise year-on-year in April by 5.6 per cent and 9.1 per cent respectively.

Despite some slowing in April, preliminary weekly sales volumes so far this year are just 4 per cent lower than over the same period in 2021 and remain 48 per cent higher than the same period in 2020.

Comparing sales volumes to date this year, with last year, Victoria fell 7 per cent, Tasmania saw a 10 per cent drop, NSW saw a 12 per cent fall, and Queensland took a 1 per cent drop.

On the other hand, housing sales outpaced the same period to date last year in the ACT (up 5 per cent), the Northern Territory (10 per cent increase), South Australia went up 4 per cent, and Western Australia jumped 13 per cent.

Looking at the capitals, sales volumes gathered pace in Canberra, Perth, Adelaide, and Darwin, while Hobart and Sydney saw the greatest deceleration in activity compared to last year, with moderating buyer demand weighing on sales volumes.

The report found Adelaide appears to be seeing “strong” demand likely boosted by a relative affordability advantage and interstate demand. Meanwhile Perth and Darwin benefited from reopened state and international borders and strong state economies, as well as tight rental conditions fuelling demand for housing.

Brisbane had been tracking ahead of 2021, but April has seen sales volumes slow and to date this year volumes are just 1 per cent off last year’s levels.

Regional areas continue to see a constrained stock of available properties for sale, while demand per listing remains high, which is supporting price growth in these markets. 

[Related: Home vales stall amid rate hike fears]