Vendors have returned to the market this spring, with new data from PropTrack showing that new listings are up 4.5 per cent compared to last year.
However, in a twist, new homes coming onto the market were 7.1 per cent lower in September compared to August, with fewer vendors prepared to sell during the school holidays.
According to the PropTrack Listings Report, the number of new listings across Australia’s combined capital cities was 5.9 per cent higher in September of this year compared to 2022.
While regional areas saw new listings up 2.3 per cent over the 12-month period.
Overall, total listings increased 0.8 per cent over the month and 1.6 per cent higher compared to last year.
PropTrack economist, Anne Flaherty, said after an unseasonably busy end to winter, the number of new listings dipped slightly in September compared to August, due to the impacts of school holidays and a long weekend in a number of states.
“It was a busier start to spring, with new listings picking up from 12 months ago and sitting 4.5 per cent higher nationally,” Ms Flaherty said.
“An improvement in seller sentiment is a key driver behind the annual rise in the number of new listings.”
Overall, it’s the larger capital cities that have added the bulk of new listings this spring.
Sydney leads the way, with new listings up 21.3 per cent compared to last year, followed by Melbourne (10.1 per cent) and Canberra (4.9 per cent).
Overall, new listings in the combined capital cities recorded an 11 per cent decline in September compared to August.
While regional areas held relatively steady, with new listings dipping just 0.3 per cent month-on-month.
Ms Flaherty said this time last year, sentiment among both buyers and sellers was declining, with the market in the midst of one of the most aggressive series of interest rate hikes ever undertaken by the Reserve Bank.
“Interest rates are now largely predicted to have reached their peak, having held steady since July,” she said.
According to Ms Flaherty, this has supported a recovery in sentiment, which has recorded a significant jump from the start of the year.
“While spring is typically the most popular time of year to sell a property, it isn’t uncommon for fewer new listings to be seen in September compared to August, with this occurring during five of the past 10 years,” she said.
“October, in contrast, has consistently recorded a monthly increase in for-sale listings over each of the past 10 years, an outcome that may be repeated this year, with strong selling conditions in most markets.
Perth recorded the largest annual drop of any capital city, with new listings down 12.8 per cent compared to last year.
The only other cities to see a decline in listings over the past 12 months were Darwin, down 11.3 per cent, and Brisbane, down 4.2 per cent.
Ms Flaherty said property prices have climbed every month in 2023, recovering last year’s falls, to reach a new peak in September.
“What’s more, the outlook for the property market remains strong, with interest rates likely at, or very close to, peak levels,” she said.
“Australia’s population is growing at record speeds which is driving increased demand for housing.”