
The Australian property market has seen a significant increase in listings this spring, with volumes 8.8 per cent higher than the five-year average, according to CoreLogic data.
Tim Lawless, CoreLogic’s research director, noted that while spring is traditionally a busy period for real estate, the current influx of listings marks a shift from recent years when sellers were hesitant due to perceived unfavourable conditions.
“The flow of freshly advertised housing stock hasn’t been this high at this time of the year since 2021,” Mr Lawless said.
However, the increased supply has not been matched by a corresponding rise in demand.
Auction clearance rates have declined to the low 60 per cent range across combined capital cities, approximately 4 percentage points below the decade average.
Properties sold by private treaty are also spending longer on the market, with the median time rising to 32 days, up from 29 days in June and 27 days a year ago.
Despite softer conditions, dwelling prices have continued to rise modestly.
CoreLogic reported a 0.4 per cent increase in dwelling values for September, consistent with July and August’s 0.3 per cent growth.
The September quarter saw a 1 per cent national rise in housing values, the lowest quarterly increase since March 2023.
Performance varied across capital cities, with Melbourne recording a 1.1 per cent decrease in dwelling values over the quarter.
Sydney values rose by 0.5 per cent, while previously strong markets like Perth, Adelaide, and Brisbane showed signs of slowing growth.
PropTrack’s data revealed that regional areas outpaced capital cities in September, with a 0.11 per cent increase compared to 0.01 per cent in the capitals.
Eleanor Creagh, PropTrack’s senior economist, said that despite modest growth, “housing demand remains resilient, defying affordability constraints with prices lifting across much of the country in September, albeit at a slower pace in most markets”.
The rental market has also shown signs of cooling, with rents increasing by just 0.1 per cent over the September quarter, the smallest change in four years.
Mr Lawless attributed this slowdown to easing net overseas migration and affordability constraints for tenants.
As the spring selling season progresses, experts anticipate continued price growth, albeit at a slower pace, as economic factors and interest rate uncertainties continue to influence the market.