Fact checked
Homebuyers felt the heat at the start of the winter-selling season as they compete with a limited number of property listings.
PropTrack’s latest report showed that new listings declined 0.7% in June, which is expected given that it was the start o the winter-selling season.
PropTrack economist Angus Moore said the decline in activity was somewhat smaller than it is typically the case, with some markets even reporting an increase in selling activity.
“Even so, 2023’s trend of slower property market activity continued, with all capitals seeing fewer new listings this June than last year,” he said.
“With demand remaining solid, we may be seeing a concentration of buyer attention on a smaller flow of new properties hitting market.”
Sydney, Brisbane, and Canberra all reported gains in new listings over the month, up 1.2%, 6% and 4.6%, respectively.
Overall, capital cities saw a modest drop in new listings at 0.9%. On an annual basis, however, new listings across state capitals were still 14.6% lower.
Meanwhile, the total number of properties listed for sale declined 2.5% monthly. Surprisingly, the annual drop was smaller at 1%.
Across the combined capital cities, the total number of listings was 9.6% lower than a year ago.
Mr Moore said listings are likely to be lower in July and August, which will heat up the competition among buyers who are looking to enter the market.
“Activity is likely to be mildly subdued over the next couple of months during the typically quieter winter period, before activity starts to pick up again for the spring selling season, and the usual seasonal peak of activity in October and November,” he said.
For Mr Moore, selling conditions have already improved from the second half of 2022,
“Auction clearance rates have picked up noticeably compared to late last year and remained solid throughout autumn and into the start of winter,” he said.
“Home prices are also recovering after the downturn last year and increased in June for the sixth consecutive month.”
Mr Moore said there are several factors pointing to a solid outlook for housing in the months to come, including the tight demand for rental properties.
“International migration has resumed, which will further add to housing demand while unemployment is still sitting close to a five-decade low and labour demand has only mildly moderated,” he said.
“Wages growth has picked up, and there are signs the peak of inflation is behind us. Interest rates may also be nearing their peak, which could provide a sense of certainty to buyers and sellers.”
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option Tags Features Link Compare
Featured Online ExclusiveUp to $4k cashback
-
Photo by AlexKosev on Canva.
Collections: Mortgage News Buying a home
Share