Properties will need to be priced right coming into the spring selling season, with the latest data from Domain showing momentum is swinging towards buyers.
Domain’s latest market insights show a rise in new and total property listings, with some capital cities recording the highest level of new listings for the month of July on record.
Days on market are also increasing in some capitals for houses and units.
Domain Chief of Research and Economics, Dr Nicola Powell, said the increase in supply alleviated some of the momentum previously seen in the housing market and gave buyers more choice.
She said buyers were aware of that choice and could be taking more time to make their property decisions, along with holding greater negotiating power.
“When you see total supply rising, you get days on market lengthening, and then you start to see a deepening in discounting that shows and points to a slowing down overall of market momentum,” Dr Powell said.
She said in some cities and areas, property prices were still increasing, but at lower rates and she expected “further steam” to be taken out of the market in some capital cities in the coming months.
“What it really highlights is the need for the right pricing, that right asking price,” Dr Powell said.
“I think it is about hitting the market.
“We’re not in a market now where prices are running away, like we were earlier in 2024.
“Conditions have changed, we’ve seen supply rise, there is more choice and to get that speedy sale, the asking price needs to be on the money.”
New listings
The Domain data showed that for the combined capital cities, new listings in July increased 14.9 per cent compared to July 2023.
Melbourne, Adelaide and Canberra all recorded the highest level of new listings on record for the month of July.
New listings increased the most in Canberra, up 33.9 per cent year-on-year, followed by Adelaide (up 27.9 per cent), Darwin (up 18.6 per cent) and Melbourne (up 18.4 per cent).
Sydney recorded the second highest level of new listings in July, rising 6.7 per cent higher than in July 2023.
“July has almost defied expectations this month, compared to historical months,” Dr Powell said.
“I think that’s telling of a lot of different scenarios that are unravelling.
“Seller confidence is absolutely there, and I think that’s because of record pricing, and that price expectation continues in some of our cities that continue to show momentum, like Brisbane.
“But I do think as well, it could be telling that some people are listing their homes for sale because of the narrative of ‘higher for longer’ and that burden of a higher cash rate.”
Domain’s analysis also revealed that in Sydney, the total supply of listings had increased the most in Botany, up 49.7 per cent in July 2024 compared to July 2023.
In Melbourne, total listings increased the most in Casey-South, up 41.1 per cent, while in Brisbane it was Sunnybank that recorded the largest jump, up 31.6 per cent.
In Adelaide, total listings rose 74.1 per cent in Gawler-Two Wells in July 2024 compared to July last year, while in Canberra, it was North Canberra that saw the biggest annual jump, up 75 per cent.
In Perth, Kwinana recorded an annual increase of 22.3 per cent, while in the Apple Isle, it was Hobart – South and West that recorded the largest jump in total listings, up 281 per cent annually.
Days on market
The analysis also revealed days on market for houses, in capital cities, had blown out the most in Canberra’s Woden Valley, rising 76.1 per cent annually.
In July 2023 Woden Valley recorded 66 days on market for houses, but in July this year it had risen to 117 days.
Brighton, in Hobart, recorded the second biggest annual change (up 65.8 per cent), with days on market rising from 59 to 97.
In Melbourne, Stonnington-East recorded a 53.9 per cent increase in days on market for houses, rising from 57 days in July last year, to 88 days in July 2024.
In Sydney, days on market increased 45.6 per cent in Botany, rising from 49 days in July 2023, to 72 days in July 2024.
Days on market in the Caboolture Hinterland, in Brisbane, climbed 22.6 per cent annually, from 73 days in July last year to 90 days last month, while in South Perth days on market rose from 52 in July 2023 to 57 in July this year.
Dr Powell said overall, Australia still needed more houses.
“Even with the supply rebalancing in some cities, it’s important to remember that we’re still not building enough new homes to keep up with population growth,” she said.
“It’s this structural undersupply that needs to be addressed.”
