While overall listing levels have shown a second month of decline, Ray White listing authorities remained stable in October suggesting that market strength could rebound in coming months.
New listing volumes are following a similar spring time trajectory as 2022, in contrast to the 2021 period, which is more aligned with the seasonal uplift we have historically seen. While interest rate uncertainty is a major catalyst for this change, the housing supply issue across the country adds to vendors' hesitation in coming to market in fear of not being able to secure a new home. Similarly, investors have absorbed financing increases thanks to strong gains in average rents and this secure and growing income stream is encouraging many owners to hold their assets.
Melbourne has rebounded up 5.7 per cent, together with Canberra, which continues to show consistent strength, increasing 16.8 per cent over the month.
Despite the disappointing results of this month, overall these capital city results are only down one per cent. However, over the year this is at a greater rate of -8.4 per cent. Looking annually, the results are showing greater difficulty, however, Sydney and Canberra have improved over the year, while Melbourne has seen limited change.
Regional Australia has seen a greater decline in activity, a combination of population movements away from regional markets and uncertainties around capital growth has seen many vendors opt for a “wait and see” approach towards their assets.
Similarly, investors have reaped the benefits of rental growth which for many have offset increased financing costs. With price correction in some regional markets across the country, we expect to see some uptick in activity as we head towards the summer holiday months with enquiry levels increasing for holiday home investment, particularly in coastal areas.
Ray White listing authorities (the point at which a vendor has signed to Ray White but the listing is not yet advertised) provides a key indicator as to the outlook for listings.
Overall, we continue to see listing authorities remain well in excess of 2022 results, albeit not trending similarly to the spring fluctuations historically seen in 2021. While this could be due to higher market share for Ray White, it could also suggest that a rebound in activity could occur once greater economic certainty emerges.
