A property listings boom is sweeping across Australia, with sellers jumping at the chance to capitalize on rising prices and robust demand. But here’s where it gets controversial: is this a sign of a healthy market, or are we heading for a bubble?
The latest REA Group Listings Report reveals a significant surge in new property listings nationwide. In October, listings climbed by a whopping 22% compared to September, with the capitals experiencing an even larger rise of 24%. Sydney and Melbourne, in particular, saw the highest number of new listings in a decade, with volumes up 20% and 30% respectively.
Despite this influx, the total number of homes for sale across the country remains 9.5% lower than a year ago. Perth, Brisbane, and Darwin have seen even sharper declines, with total listings down by nearly 15%, 17%, and over 38% respectively.
Angus Moore, executive manager of economics at REA Group, attributes this lift in new listings to improved market sentiment and favorable conditions. He highlights rate cuts, good buyer confidence, and positive expectations for home prices as key factors.
The impact of these changes is evident in the market. Peter Diamantidis, a real estate agent and director at Ray White United Group, notes that with interest rates coming down, there’s more stock available as previously constrained homeowners can now consider upsizing.
Nationally, median home values are now 7.5% higher than a year earlier, with prices reaching new peaks in most areas. Melbourne’s home values have surpassed their previous high from early 2022, while Sydney and Melbourne have seen annual increases of 6.4% and 4.2% respectively.
Moore believes the combination of rising prices and improved auction clearance rates has encouraged more owners to list their properties. He adds, “We’re seeing consistent price growth, which is giving vendors the confidence to enter the market.”
With demand expected to remain strong and prices continuing to rise, the current conditions appear to favor sellers. Moore describes the environment as “fairly healthy.”
So, what does this mean for the future of the Australian property market? Is this a sustainable trend, or are we heading for a correction? We’d love to hear your thoughts and opinions in the comments below!