A recent report by real estate group PropTrack underscores a significant rise in house listings, particularly in Sydney and Melbourne, Australia's two largest property markets.
This trend is not to be overlooked, as it could potentially reshape the dynamics of the real estate market.
According to data from realestate.com.au, new listings across the nation rose by 1.3% in June compared to the previous year. This increase was even more pronounced in the combined capital cities, where new listings surged by over 5%. Notably, aside from 2021 and 2022, the national volume of new listings this year is the highest since 2017.
Focussing on individual capital cities, Melbourne has experienced the most significant rise, with a 9.1% increase in new listings in June compared to the previous year. Sydney follows with a 7.8% increase. Conversely, the tight market of Perth has seen a decrease in new listings of 5.7%.
Year-On-Year Listing Changes
When comparing total listings for June 2024 to the previous year, the data reveals:
- Melbourne: A substantial increase of 23%
- Sydney: A rise of 16.9%
- Canberra: A significant increase of 29.2%
- Perth: A considerable decrease of -23.3%
- Adelaide: A decrease of -11.9%
Market Dynamics
The rise in listings in Melbourne and Sydney is most likely due to interest rate pressures on homeowners and generally softer market conditions in these two cities compared to Perth, Adelaide and Brisbane. It will be interesting to see how the markets in Melbourne and Sydney adjust and perform when the traditional flux of spring listings starts in the next 4 – 6 weeks.