The number of distressed listings has risen across Australia, despite the number of total listings falling in January.
New data from SQM Research shows that the number of residential property listings across the country dropped 5.7 per cent, month-on-month, to 220,956.
Yet the number of homes sold under distressed conditions climbed to 5252, which is a 2.4 per cent increase on the month prior.
Notably, the number of distressed listings in NSW increased 9 per cent in January, and is also up 16.3 per cent on the same time last year.
In Victoria, the number of distressed listings is up 17.8 per cent annually to 906.
SQM Research Managing Director Louis Christopher said the increase in distressed listing activity emerging out of NSW and Victoria was concerning.
“The 9 per cent rise in NSW for the month was very abnormal and suggests some vendors in NSW are increasingly desperate to offload their properties,” he said.
The figures also showed that the number of total listings fell in each of the capital cities in January, with Adelaide experiencing the biggest drop at 9.9 per cent.
This was followed by Canberra (down 9.3 per cent), Perth (down 8.4 per cent) and Melbourne (down 8.3 per cent).
Despite this, five capital cities have more listings now than they did 12 months ago, including Canberra (up 24.4 per cent), Hobart (up 18.1 per cent), Melbourne (up 6.2 per cent), Sydney (up 5.7 per cent) and Darwin (up 4.5 per cent).
The number of new listings dropped 17.5 per cent nationally, in January to 44,883, despite Sydney recording a 3.7 per cent jump to 8027 new listings, and Darwin increasing 12.2 per cent to 203.
Nationally, the number of old listings remained steady at 62,412.
“The country recorded a typical January hiatus in the housing market,” Mr Christopher said.
“However, forward listings suggest that February will be a very strong month for housing activity.
“Auction numbers are up by 31 per cent compared to this time last year.”
However, Mr Christopher cautioned the industry not to get too far ahead of itself or read too much into the jump in clearance rates last week.
“Yes, it may be a positive sign,” he said.
“Yes, there may be an interest rate cut at some point this year.
“However, the market right now is very mixed and vendors need to realise that buyers will be sensitive to any economic slowdown that may be presently occurring.”
