After a significant lift in volumes earlier this year, new listings fell for the second consecutive month a new report shows.
While the rise in listing volumes earlier this year helped supply meet record-high buyer demand, the REA Insights Listings Report June 2021 showed a 4.4 per cent decline in May.
Despite the slight drop in May, new listing volumes remain higher compared to the same time period in 2019 and 2020 and are in line with longer-term trends.
REA Director of Economic Research Cameron Kusher said although national new listings were lower over the month, they were 61.6 per cent higher compared to May 2020, which was COVID-19 impacted. It was also higher than volumes in May 2019.
“While buyer demand remains undoubtably strong, softening in the market over recent months has resulted in fewer sales on a weekly basis and appears to be contributing to the lift in total active listings, which is up 0.9 per cent in May,” Mr Kusher explained.
“Historically, new listing volumes fall over the winter months before bouncing back in spring, so September will be a real litmus test for the market.
“With less market stimulus and substantially rising house prices, we don’t expect the level of demand to return to previous highs. Nevertheless, demand continues to outstrip the supply of properties for sale, particularly in regional areas, which should lead to further prices increases, albeit at a slower pace of growth.”
REA key report findings:
- New national listings fell 4.4 per cent over the month of May compared to April.
- Despite new national listings falling, volumes in May were 61.6 per cent higher than in May 2020, as well as being higher than volumes in May 2019.
- Combined capital cities recorded a month-on-month fall in new listings of 5.6 per cent, which was larger than in regional markets (down by 2.2 per cent).
- There was a 0.9 per cent increase in active (total) listings in May, which indicates more properties are being listed than are being sold.
- The increase in active listings is the result of combined capital city listings increasing by 3.2 per cent, month-on-month as regional markets fell 1.7 per cent, down to a new record low.
- National active listings were 13.7 per cent lower in May compared to the same time last year.
- Regional active listings were down 27.1 per cent year-on-year while capital city listings were 2.5 per cent higher year-on-year.