The latest REA update shows that despite the market slowdown, supply remains strong, with new listings increasing 9.1% in May (5.8% YoY).
Listings rise counters impacts to demand
New listings increased in May, up 12% MoM after the Easter long weekend. In capital cities
listings were up 4.3% compared to 2019 (continues 2022’s initial busy trend) and were still performing well in regional areas, up 4.5%.
Sydney recorded a 13.5% increase in new listings compared to April, with Melbourne logging an 11.2% rise. While new listings were slightly lower than at the same point in 2021, down 4% YoY, stock in both cities is now above the decade average.
The trend continued in other capital cities, with nearly all showing double-digit MoM increases. Regional markets also saw strong growth in new listings, up 9.3% MoM (11.8% YoY).
The market looks good for buyers.
It’s a positive sign for the market that new listings continue to outpace sales. Over the last few years, the increase in homes for sale has made it easier for buyers to find a property that suits them. We’ve also seen a decrease in competition for properties, making it easier for buyers to get a great deal.
REA expects the pace to slow a little as the year progresses before picking up once up during the spring selling season.
Property prices slow
But the report also showed property prices fell nationally in May for the first time since COVID hit, no doubt influenced by interest rate hikes. It looks likely this decline could continue into the rest of the year.
Realestate.com.au reported 5% fewer buyer visits in May, while rental enquiries got a 7% boost across the country. Developer enquiries continued to decrease from first quarter levels.
Clearly, buyer demand has declined following higher levels at the start of 2022. But there’s hope on the horizon—the report claims fundamental demand drivers are still strong, including low unemployment, increasing wage growth, and immigration slowly returning.
Click here to download REA’s full PropTrack Listing Report for June 2022.
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