- New listings are up 24.8% in February, but 11.1% lower than the same time last year.
- New listings increased most in Sydney, Melbourne, Darwin and Canberra
- The tight supply of properties on the market is helping to support home prices
The upcoming autumn selling season has seen the number of new listings increase by 24.8% in February according to PropTrack.
Despite the sharp jump in new listings, activity remains quieter than at the same time last year, with new listings down 11.1% across the country.
However, the total number of properties listed for sale in February was up 9.4% over the month and 9.6% compared to last year, as more sellers entered the market.
PropTrack Economist and report author, Angus Moore, said: “Activity across the nation’s property markets picked up in February as vendors geared up for the autumn selling season.”
“The number of new listings in capital cities jumped 26.6% month-on-month. Even so, property markets have had a slower start to the year, with the number of new listings in the capitals down 13.2% in February compared to the same time last year.”
New listings in Sydney and Melbourne surge
The increase in new listings was seen most of all in both Sydney (32.8%) and Melbourne (38.2%) with both capitals seeing a large increase.
While Brisbane (10%), Darwin (50.6%), Canberra (47%), Adelaide (16.5%), Perth (18.1%), and Hobart (11.7%), all experienced a strong month-on-month increase in new listings in February.
Despite notable month-on-month increases, new listings were lower than in February last year in most capital cities, including Sydney (-18.7%), Melbourne (-15.8%), Brisbane (-12.3%), Adelaide (-3.8%), and Perth (-6.7%).
Hobart was the one city that bucked the trend, with new listings up 15% compared to February 2022, maintaining the strong market activity the city experienced throughout much of last year.
While nearly all capital cities saw an increase in the total number of properties listed for sale compared to a year ago, only Perth recorded a decline.
Notably, in both Sydney and Melbourne, the total number of properties listed for sale in February is still around the average for the past decade.
Year-on-year change in new listings on realestate.com.au
Low listings propping up prices
Property prices across the country have been in decline since the Reserve Bank of Australia (RBA) started hiking rates, however, the falls have begun to slow down in part due to tight stock levels, said Mr Moore:
“The limited new stock coming to market in recent months appears to be putting a floor under prices. After consistent price falls throughout most of 2022, home prices experienced a slight increase in February, up 0.2% month-on-month. Almost all capital cities recorded small increases.”
“Even so, the full effect of the Reserve Bank’s rapid hike in interest rates is yet to be felt, with prices expected to fall further this year.”
Mr Moore said while selling conditions have softened from where they were a year ago, and market activity has slowed, the fundamental long-term drivers of demand for housing remain solid.
“Unemployment has remained close to multi-decade lows for much of 2022 and into early 2023, wages growth has started to pick up and international migration has also resumed, all of which support housing demand.”
