New house listings in September reach 10-year high across Australia: report
Written by admin on October 9, 2024
The number of new property listings nationwide have hit their highest point in nearly a decade off the back of 15 consecutive months of growth in Sydney.
Released on Wednesday. the REA Group’s September PropTrack Listing Report found new listings were at their highest volume for the month of September since 2015.
Nationally, new listings rose by 2.8 per cent in September and 10.1 per cent annually, with year-on-year increases in new listings reported during 12 of the past 14 months.
PropTrack director of economic research Cameron Kusher said while it was impossible to say exactly why listings were as high as they were, nixed rate cuts were a factor.
“A lot of people had been anticipating interest rate cuts this year. They’ve now likely pushed out to next year,” Mr Kusher said.
“Maybe, some people felt like they could hold on until late this year (to sell), but another four to six months is a step too far.”
Other factors included the generally high amount of equity people had in their properties following a prolonged period of property price growth.
A slight loosening of the rental market, Mr Kusher said, was also making it easier for sellers to shed their properties before having another to move in to.
“People just look at the rental market in a vacuum, but a lot of people, when they sell their property, they don’t buy at the exact same time,” he said.
“So, they need to rent for a period of time. When the rental market has been so tight, that’s probably discouraged some people from putting their properties on the market.
“Now, the rental market’s still quite tight, but that slight loosening maybe gives people a bit more confidence that they can find somewhere to rent while they’re seeking out their next property to purchase.”
With another interest rate hike unlikely, Mr Kusher said buyers’ borrowing capacity stood to increase.
“If we’re looking at cuts next year, it’s hard to know exactly how that’s going to impact on the market,” he said.
“For people that are struggling and maybe thinking of putting their property onto the market, an interest-rate cut will ease that financial burden a little bit.
“It will also increase the borrowing capacity for people that are looking to buy as well or people that already own.”
For the nation’s capital cities, last month was the strongest September for new listings since 2015 and regionally it was the strongest since 2017.
Canberra reported the largest year-on-year increase in new listings with growth of 19.8 per cent, followed by Sydney at 17.9 per cent and Perth at 17.7 per cent.
Darwin, meanwhile, reported an 18 per cent annual decrease in new listings in September, while Hobart reported a decrease of 1.6 per cent.
Total listings were 7.7 per cent higher over the year across combined capital cities but were lower in Brisbane, Adelaide, Perth, and Darwin.
Regionally, new listings in South Australia, Tasmania, and the Northern Territory declined over the year, with the latter reporting a massive 39.8 per cent drop-off.
Across the regions, the stock level, according to the report, remained mixed, with falls in Western Australia and Queensland but large increases in Victoria, Tasmania, NSW.
The Albanese government continues to face pressure over its housing policy, including its promised $10bn Housing Australia Future Fund.
The overall package is worth about $32bn and includes plans to build 1.2 million new homes by the end of the decade despite warnings that target won’t be met.
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