Home buyers rejoice! More listings are hitting the market
Great news for home buyers! After an extended run of low listings, the number of homes coming onto the market is skyrocketing. So could this have an impact on the property market? Let’s take a look.
Take a look around your local suburb, and chances are you’ll see freshly minted For Sale signs popping up all over the place.
That’s because a large number of homes are coming onto the market.
Research firm PropTrack says the property market is off to a strong start for the year, with the number of new listings nationally on realestate.com.au up 12% year-on-year in January.
The largest proportion of house and land listings are also in metro areas, with 17 projects in Geelong.
Eight of the top 10 suburbs are in Victoria, with Clyde North (Melbourne – South East), Armstrong Creek (Geelong), and Fraser Rise (Melbourne – West), all with the second highest number of developments.
Melbourne and Sydney had their busiest January in over a decade.
Activity was also strong in Hobart, Brisbane and Adelaide, with Canberra experiencing its busiest-ever January for new listings.
Only Perth bucked the trend, recording slightly fewer new listings this year compared to January 2023.
Why the uptick in listings?
The rise in new listings reflects strong demand, very low unemployment and population growth.
Home buyers are also enjoying a more stable interest rate outlook.
February saw rates remain on hold, and PropTrack says financial markets are now expecting a reasonable chance that interest rates may start to fall later in the year.
What does more listings mean for home buyers?
More homes coming onto the market gives buyers the benefit of increased choice, and that’s a real plus if you are looking for your first home or upgrading to your next place.
But the rise in listings may not push home prices down.
That’s because we are still seeing plenty of keen buyers.
As a guide, CoreLogic estimates 115,241 homes were sold over the three months ending January 31 – an 11.9% increase on the same period last year, with high levels of migration being a big driver of demand.
CoreLogic adds that expectations of lower rates later this year could see house price growth accelerate.
How you can prepare
More choice can be a good thing for buyers. However, it can become easy to lose track of what you’re looking for in a property, especially if you’ve attended a large number of inspections.
That’s when it helps to draw up a list of must-have home features (such as aspect, block size or parking requirements) followed by nice-but-not-necessary features (like, say, a swimming pool or a shed) to assess each home you visit.
It also makes sense to be ready to act when you see a property you’d like to buy.
Having home loan pre-approval in place lets you set a buying budget, so you can focus on homes within your price range. It also means you can make an offer with confidence – and stay one step ahead of less-organised buyers.
Talk to us today to get your home loan ducks in a row and take advantage of a wider choice of homes listed for sale.
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