Influx Of New Home Listings Across The Country.
With the end of the first quarter of 2024 now only a week away, early reports are coming in declaring that the volume of new listings hitting the market is accelerating.
Whilst we will be able to report these figures accurately next week at the conclusion of the month, both realestate.com and the Gold Coast Bulletin have ran stories this week discussing the rise in listings numbers as well as the reasons behind new listings growth
Whilst seller confidence in market conditions is one reason for more listings coming to market, there is no doubt that investors are now feeling the pinch with higher interest rates and the growing demands and red tape placed on landlords seen as a key reason why investors are selling.
This is clearly having an impact with less rental stock again placing upward pressure on rents.
Last week's lead articles discuss these various points. Firstly, we have an article that was released during the week on realestate.com.au that discusses the growing number of properties being listed for sale. Our second lead article comes from Saturday's Gold Coast Bulletin. The article discusses the number of landlords choosing to sell their investment property as well as the reasons why.
Both articles are below.
Why rising seller confidence is good news for buyers
More home sellers believe it's a good time to put their property on the market, which has led to an influx of new home listings across the country.
Nationally, there was a 16.6% year-on-year increase in new listings on REA in February, while total listings rose 7.2%.
The surge in activity is particularly notable in capital cities, where new listings reached their highest levels since 2012.
It comes as recent data from Realestate.com's Residential Audience Pulse Survey underscored the trend, revealing that one in ten Australian consumers were contemplating selling their property.
Seller confidence has significantly improved in the past 12 months, with 43% of survey respondents now considering it a favorable time to sell, a notable increase from 34% in January last year.
Western Australia has the highest seller sentiment, with 63% of respondents expressing optimism about the current market, marking a substantial 70.3% increase from last year.
NSW, Queensland, and South Australia have also witnessed substantial growth in seller sentiment over the past year, with NSW up 53.8%.
The primary drivers behind this uptick in seller sentiment were perceptions of rising prices and increased buyer demand.
Over a third of sellers anticipated further price increases in the next six months, paralleled by a similar proportion foreseeing a surge in buyer demand.
Lifestyle changes, such as relocating to a different area or seeking a property with specific amenities like a pool or more space, were the primary motivations for selling.
Downsizing ranked second, reflecting the preferences of Australia's aging population seeking properties better suited to their evolving needs.
Respondents aged 65 and over considered downsizing to be their main motivator for moving, whereas upsizing was the main factor for those aged 49 and younger.
While seller numbers are on the rise, several obstacles hinder property sales presently.
Many sellers cited the difficulty in finding a suitable property to purchase as the primary reason for reconsidering selling, with 67% of survey respondents unable to find a property that they wanted to buy or that met their needs.
Moreover, finding a property that meets their criteria and falls within their budget remains a hurdle exacerbated by robust price growth over the past year.
Despite these challenges, 43% of sellers express a strong intention to sell within the next six months and this should further bolster new listings volumes.
Home buyers will welcome the uptick in new listings as more options hit the market, but will still face significant competition due to lower-than-normal total listing levels.