As spring breathes new life into the Australian property market, Sydney and Melbourne are spearheading a resurgence in listings. With a sharp increase compared to last year, homeowners seem to be riding a wave of confidence, inviting buyers to dive back into the market.
New data from PropTrack, published on realestate.com.au, paints an optimistic picture for the industry, which experienced a noticeable slump during 2022. The figures for October reveal a national surge in new property listings—up 17 per cent from September and an encouraging 15.7 per cent from the same time last year.
Angus Moore, PropTrack’s senior economist and author of the report, suggests that the numbers signify a meaningful recovery for the real estate sector. “Property markets surged in October for the typical mid-spring peak in activity. This year’s spring selling season has been stronger than last year’s so far, particularly in Sydney and Melbourne,” Moore illuminates.
The increase in vendor confidence drives this new momentum, particularly palpable in Sydney and Melbourne, which recorded year-over-year increases in market listings of 32.5 and 31.7 per cent, respectively. Moore reflects on this phenomenon, saying, “Both Sydney and Melbourne saw a much busier October than last year, which, in part, reflects how quiet spring was in 2022. Activity is now on par with what has been typical for mid-spring over the past decade.”
October’s numbers are not just a flash in the pan; they suggest stronger selling conditions are at play. Vendors anticipate that their desired prices are within reach, reassured by the stabilising interest rates. This optimism is echoed in regional areas, where new listings have seen a 9.4 per cent rise month-on-month, indicating an 11.1 per cent leap over the previous year.
Property markets surged in October for the typical mid-spring peak in activity. This year’s spring selling season has been stronger than last year’s so far, particularly in Sydney and Melbourne Angus Moore
Mr. Moore highlights the encouraging trend, stating that “property prices have climbed every month in 2023, and continued to do so in October. That means prices nationally have completely recovered last year’s falls.”
Nonetheless, the PropTrack economist cautions that the Reserve Bank of Australia’s (RBA’s) decisions in the early months of the next year could be pivotal for the market’s sustained buoyancy: “The RBA increased interest rates a further 25 basis points in November after four months without a change. While markets are expecting only a modest chance of further increases, they remain a possibility. Any further increase in rates could negatively affect buyer and seller sentiment.”
As the property market recalibrates itself, both sellers and buyers could be entering a period of fruitful negotiation and widespread opportunity. The outcome, however, remains intertwined with the economic levers pulled by monetary authorities. For now, the signs point to a welcome season of vitality and growth in Australia’s urban housing landscapes.