Will “for sale” property listings rise this Easter and give home buyers a chance?

As the new year begins, many experts in the Australian real estate market are wondering whether the traditional seasonal upswing in new ‘for sale’ listings will occur in early 2023. According to the latest CoreLogic Property Pulse release, the outlook appears to be uncertain.

CoreLogic’s research director Tim Lawless reports that with a reduced number of listings through spring and early summer, vendors seem reluctant to test the housing market at the start of 2023. 

In fact, the number of properties listed for sale at the start of 2023 is 31.5% below the previous five-year average and 2.9% lower than at the same time last year. 

It should be noted that the upswing usually occurs in late summer and early autumn. 

What does this mean for homebuyers right now?

The reported decrease in the number of properties for sale is significant, as it indicates that vendors are not feeling confident about the current state of the housing market – or at least that buyers won’t meet their expectations. 

The low number of listings is also having an effect on overall housing supply, which can impact prospective buyers who otherwise would have a lot more housing stock to choose from. If sellers stay on the sidelines though, the supply can dry up.

However, it should be noted that CoreLogic’s report also points out there may be pent up stock and greater activity that will hit in the second half of 2023, mostly from vendors who have been waiting for the right time to sell. 

It’s common to see a pre-easter “bump” in listings but given the lower levels of selling activity, it’s not difficult to see why there’s uncertainty right now. In addition, with the continued cost of living crisis and higher home loan interest rates, many vendors might find it difficult to even lure buyers.

Are first-time buyers likely to benefit?

With reduced competition and lower asking prices, many first-time home buyers may find themselves in a much better position than previously. It’s true that there could be a lot less choice on the market, but there may also be fewer buyers. 

It remains to be seen how the Easter market will play out but for some prospective buyers there may be a small window of opportunity in certain suburbs. 

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