Australia Property Listings and Prices Rising
The number of new listings is finally starting to climb, as property prices are also bouncing back. March has recorded gains across national property prices according to price indexes.
In a recent analysis by CoreLogic, the Home Value Index found a 0.7% rise in home prices for July. PropTrack’s Home Price Index recorded a 0.16% rise.
For homebuyers and sellers, the revitalising market will have implications. Let’s look at why the market has changed and what this means for Australians.
What Drives Price and Listing Increase?
Property prices and listings move according to housing market trends, and any upward movement encourages buyers and sellers to be active in the market. Homebuyer sentiment is now improving after the pause in cash rate hikes.
Indeed, after successive rate hikes, the RBA announced its rate pause in April. And this much-needed break gave way to buyer confidence and in turn, provided an uptick in the prices. Australian home prices have reversed most of the declines experienced in 2022 – which has actually sunk at the same levels during the pandemic.
With home values rising for the past five months, there will likely be more players in the housing market (both sellers and buyers) that otherwise were not participating when the market was in decline last spring.
What about listings?
Since August, the number of new listings added to the Australian market was 3.3% above the previous five years’ average. The number of new listings has risen, but analysts note that it is not because of struggling mortgage holders who are selling their homes.
A more robust listing across the country means more activity in the sector, better home valuations, and better overall selling conditions. Based on years passed, the trend is that 0.5% in new listings come from every 1% increase in home values per year. Indeed, better listings is an indicator of bigger activity in the market.
So now is a good time for buyers, as better listings mean more options for homebuyers all over the country. Listings may also be improving because sellers are trying to beat the spring rush that has traditionally made competition more vigorous amongst vendors in the housing market.
While mortgage holders are seeming to hold off the effects of mortgage stress, it’s likely to see the costs become more evident through the second half of the year. Borrowers may need to sell up if repayments get too overwhelming.
Opportunity for Sellers and Buyers
Listings increases amidst the RBA’s rate hike pause is an opportune time for sellers to put up the property for sale. Resilience is pretty evident in the middle and more affordable parts of the market, which is what first-time home buyers and investors focus on over premium housing.
Potential homebuyers may have more options now, which means a broader selection of available housing especially across areas in Regional Victoria, Melbourne, and Hobart.
Of course, with credit conditions remaining tight, there’s likely to be conservative growth in purchasing activity unless there are more government schemes that support homeownership.
Buying a home involves checking market trends and being on top of government updates. Using a mortgage broker gives you access to these insights and more – all for better decision-making. Talk to our mortgage professionals today to make the process easier. We’re available whenever you need us!
