Strong property listing numbers spell good news for home buyers

A continued flow of residential properties going to market, particularly in Sydney, Melbourne and Canberra, has eased earlier competitive conditions and tilted the market further in buyers’ favour, according to recent data from PropTrack.

Its June listings reports showed that while activity has slowed somewhat in recent months, new ‘for sale’ listings across the country are still up 8.5% compared to last year — marking the busiest June since 2011.

In Sydney, new properties listed for sale in June fell 8.1% compared to May, but an active start to winter pushed the number of new listings 1.3% higher than they were at the same time last year.

A similar picture played out in Melbourne, where new listings were down 14.6% month-on-month but up 0.5% compared to June of 2021.

“The property market has had a strong first half of 2022. There has been a brisk pace of new listings, with more new listings nationally across the first half of the year than during any year since 2015,” said PropTrack economist, Angus Moore.

“While conditions are likely to slow a little as we continue through the typically quieter winter period, activity has remained robust in many markets.”

Changes in new listings across capital cities (source: PropTrack)

Canberra in particular saw exceptional gains after having experienced a quiet few months. It recorded the strongest June on record with a 9.4% increase in new listings over the month and 32.1% increase in new listings over the year. 

“Though selling conditions broadly have begun to temper after a very strong spring 2021 and early 2022, fundamental drivers of demand remain strong, with unemployment low, wages growth expected to pick up over this year, and international migration now returning,” said Moore.

But it’s only a matter of time before rising interest rates take a large bite out of the record gains we saw in the property market last year. 

Data from property research firm CoreLogic showed capital city dwelling prices fell 0.8 per cent over the June quarter, with the largest falls recorded in Sydney (-2.8 per cent) and Melbourne (-1.8 per cent). 

The two major markets will likely lead the downturn in the coming months, but higher interest rates are expected to have a dampening effect on property prices across the country.

Indeed, recent forecasts by NAB economists have capital city dwelling prices falling by 3.5 per cent this year and a further 14 per cent over 2023. 

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