Listings can't keep up with demand
The number of new listings coming to the market has surged compared to the same time a year ago.
However, low interest rates and improving property prices have created a buyer appetite which is outstripping new stock faster than ever.
Property analyst RP Data found there was an 18.9% increase in new listings in March compared to the same period in 2013.
But while more sellers are coming to the market, the total number of properties for sale – new and re-listed properties for March - was actually 3.8% less when comparing the two periods. Put simply, supply can’t keep up with demand.
Units have attracted the strongest levels of interest: new listings were up 22.6% in March this year, however, the overall number of units left for sale after the four weeks to 30 March was 5.1% lower. Interest in houses was similar, with the number of new listings surging 20.2% but overall listings ending 4.5% lower.
RP Data found the majority of capital cities were experiencing higher numbers of new listings for March, with Sydney (an increase of 49.7%) and Melbourne (an increase of 32%) the stand-out performers for growth.
Sellers have also been motivated in other capital cities, including:
- Hobart – an increase in new listings of 21.8%
- Perth – an increase in listings of 17.8%
- Brisbane – an increase in listings of 15.8%
- Adelaide – an increase in listings of 15.4%
- Darwin – an increase in listings of 14.2%
- Canberra – a decrease in listings of 12%
However, the overall number of new and re-listed properties advertised for sale in the combined capital cities was down 8.3%, as buyers capitalised on record low interest rates.