Properties for sale remain flat for now but it looks like we are in for a busy spring

Nerida Conisbee, Ray White chief economist

A slowing housing market can create quite different environments when it comes to the number of properties for sale. Worst case there is a flood of properties on to the market that don’t sell, indicating a market that is distressed. In a more normal environment, the number of properties for sale pulls back as sellers become more cautious. It is the second scenario that we are currently seeing in Australia. Prices may have stabilised, making it theoretically easier to buy, but the problem is finding a property for sale.

While these slower conditions indicate a much more normal market, there are some locations that have seen a big pick up in properties for sale compared to last year. While the drivers of this are different in each suburb, it does provide an indication of where buyers could potentially have a greater ability to negotiate on price. The list includes suburbs that have a large number of new homes (e.g., Andrews Farm in Adelaide, Wentworth Point in Sydney and Donnybrook in Melbourne) which isn’t surprising given that higher levels of development have taken place over the past 12 months. More surprising are some of the more expensive suburbs. Sandy Bay is one of Hobart’s most expensive suburbs but now has 15 more properties available compared to the same time last year.

There are however many suburbs that are now seeing far fewer properties for sale, indicating sellers are far more cautious. Prices may have come back or stabilised in these suburbs but unfortunately for buyers, there is far less available.

Melbourne in particular has seen a big drop in a number of outer suburban areas such as Tarneit and Wyndham Vale. Again the list is variable, including some very expensive suburbs as well as some that are far cheaper. This is one indication that the slowdown we are experiencing right now is relatively widespread and not particularly hitting one particular location type.

While the number of properties for sale is currently remaining stable, we are looking at the start of a more buoyant market for spring. An early indicator of the number of properties for sale are listing authorities. These are listings that have been signed by Ray White agents but not yet advertised.

Positively, we are seeing similar listing authority numbers as August 2021, the highest level of listing authorities we had ever recorded. While it is unlikely that the number of properties coming to market this spring will be the same as last year, there certainly will be more options out there for buyers.