More homes listed for sale as autumn shapes the first big test for the property market

Real estate agents are preparing for a strong autumn selling season as a stay on interest rates brings greater levels of certainty to both buyers and sellers.

Often seen as the first big test of the year for the property market, autumn is kicking off with a bang with new data showing there are more properties listed for sale than at the same time last year.

New property listings increased in February across the combined capitals, with all capitals bar Adelaide experiencing the second successive monthly increase in listings.

The latest Domain data shows new listings are at record highs in Canberra, at a six-month high in Darwin and at a near-two-year high in Melbourne and Sydney.

Domain chief of research and economics Dr Nicola Powell says the new listings data shows a level of confidence is returning to the property market.

“It’s been quite a strong start to the year for listings,” she says, so there is more choice for those on the hunt for a home.

“It’s slightly different depending on the cities, but most of the cities have got [more new listings] than this time last year. And actually total supply is now rising as well.

“That total supply gives us a really good indication around that balance between buyers in the market and the flow of listings that are coming on.”

Powell says a number of factors have likely contributed to the increase in listings, including an increase in consumer sentiment as a result of the stay on interest rates.

She says while consumer sentiment overall is still quite low, the market is already factoring in RBA rate cuts that are tipped for later this year.

“If Australians feel positive about the economic future and their own household finances, they are going to be much more likely to make big-ticket [decisions] such as buying or selling a home,” Powell says.

“What the expectation is, is once we see cash rates come through that is likely to shift sentiment again. While it’s likely to still be pessimistic for some time, normally … when you see an improving consumer sentiment, it does then [translate] into higher levels of housing activity – more churn occurring in the market – and that in itself can create momentum.”

Stone Real Estate Turramurra director Anna Cavill says she has definitely seen a shift in the market, with more buyers going through open homes and putting in pre-auction offers.

“I do think it’ll be a good strong year – I think we’ll see more properties coming to the market,” she adds. “There will be some more choice out there, but I think it’s not going to be a ridiculous amount of choice.

“I always say to buyers at the moment, if you find something that you like, go for it. Because the dream that something else might come along … well, I might be seeing you in two years’ time.”

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In Brisbane, where supply is still limited, affordability compared to the Sydney market is still driving high buyer interest, says Ray White Ascot director Damon Warat.

“The market is extremely busy,” he says. “We’re still running in a market with an oversupply of buyers versus sellers.

“Entry-level stuff is extremely strong. We had, I think, 40 groups through a townhouse … our first inspection was on a Wednesday after being online for about 48 hours and we got over 40 groups through, which is huge.

“And then I’ve also had prestige homes on large allotments where we’ve had 40 groups through on the first day.”

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The data also reveals auction clearance rates improved to 63.7 per cent across the combined capitals. Powell says it’s too early to determine the strength of the auction market this year, but the all-important autumn selling season will be one to watch.

“I think how March performs is probably going to be a better benchmark to how the rest of autumn and then the winter season does unravel,” she says.

“I do think that there is still sentiment out there among buyers that they’re mindful how much they take on in terms of debt, and how much they actually pay for a home … I think the overall backdrop of the cost of living crisis does make people more wary of the debt side of the housing market.”