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Listings fall again
Listings fall again, though the end is in sight.
With another rise in cash rates in May, vendor numbers again dropped. New finance is difficult to obtain. We saw inflation fall to a quarterly rate of 1.4 per cent, which translates to a 5.4 per cent annualised rate should inflation stay at the current level. Prices fell slightly across Australia, and this has not been welcome news among Australia’s sellers, with a 19.7 per cent fall in the three months to April against the same period last year.
Across the capitals, Sydney, Canberra and Melbourne are still well down on the same month last year. Brisbane, Darwin and Perth again saw more moderate losses in listings, with Hobart now also seeing losses. Adelaide also sees losses, though far smaller at 0.4 per cent.
Another interest rate rise will negatively impact future listing activity, though this may be offset by strong price growth this month. Inflation data this month shows a slight increase on last month, which may mean another interest rate rise is on the way. It may be a long winter for listings with this in mind.
Older listings are clearing out, which means less competition for new vendors. This is the positive to come out of a general shortage of listings, both new and old. Reduction in older listings shows there is a better match-up of listings to prospective buyers. Reducing older listings and driving the sales of new listings is key to a return to normalcy in vendor activity.
