The number of new listings across the country has continued to rise, jumping 12 per cent across the capital cities last month according to PropTrack.
After a disrupted April with the Easter holiday break, sellers were back in force in May with new listings four per cent higher than the same time last year.
The PropTrack Listings Report June 2022, showed Sydney (up 13.5 per cent month-on-month) and Melbourne (up 12.4 per cent month-on-month) both saw new listings bounce back from the dip experienced in April.
New listings also surged in the smaller capital cities with increases in Darwin (up 21.5 per cent), Adelaide (up 18.5 per cent), Perth (up 14.5 per cent), Brisbane (up 5.8 per cent) and Canberra (up 3.6 per cent).
Hobart had the smallest rebound from April’s dip in new listings, up only 1.7 per cent.
However, new listings in Hobart remained 46.7 per cent higher in May 2022 compared to May 2021.
Across the country, the total number of properties listed for sale climbed 4.4 per cent in May as the strong month of new listings helped give buyers more choice.
Regional markets also rebounded from April’s quieter activity, with new listings up 4.5 per cent in May and 8.6 per cent compared to the same time last year.
PropTrack Economist Angus Moore said the surge in new listings had given buyers more properties to choose from.
“The wave of new supply coming to market over the past six months, particularly in Sydney and Melbourne, has lifted the stock on market, and eased how competitive the market has been,” Mr Moore said.
“Finally, after hitting multi-decade highs in 2021, home prices are falling in many cities.
“Interest rates are already rising, and will rise further over the course of 2022.
“That will continue to place downward pressure on prices.”
Mr Moore said all cities and most regional areas saw new listings increase in May.
“The increase in new listings coming to market helped lift the total stock of properties available for sale around the country by 4.4 per cent month-on-month,” he said.
“Most cities and regional areas saw increases in total stock available for sale in May, with only Canberra and regional SA recording small declines.”
Mr Moore said the total volume of properties for sale in Sydney and Melbourne was above the decade average.
“As has been the case for the past couple of months, conditions for buyers in Sydney and Melbourne continued to improve, with more choice available for buyers than they have had for much of the past two years,” he said.
“Overall, the property market has had a strong start to 2022, with a brisk pace of new listings through much of the year so far aside from the public-holiday-disrupted April.
“In the near-term, conditions are likely to slow a little as we enter the typically quieter winter period, before picking back up for the traditionally busier spring selling season.”
After a sustained period of tight supply, Mr Moore said conditions were slowly starting to normalise.
“Selling conditions broadly have begun to temper after a very strong spring 2021 and early 2022,” he said.
“Measures of buyer demand remain solid but have declined from their high levels earlier in the year.
“Fundamental drivers of demand remain strong, with unemployment low, wages growth expected to pick up over this year, and international migration returning.”
