Property listings still sitting on the market after four weeks: SQM

The amount of homes still sitting on the market after four weeks has jumped, new figures show, as the economy weakens amid the coronavirus pandemic.

Listings that have been on the market between 30 and 60 days surged 74 per cent in March from a month earlier, suggesting sales activity had slowed in the month, according to SQM Research.

“Residential property listings are starting to increase and accumulate,” SQM Research managing director Louis Christopher said.

“I note the surge of stock that has been on the market between 30 and 60 days.

“This may reflect the start of a capital city housing market downturn due to the health and economic impact of COVID-19.”

In Sydney, there were nearly 4000 homes on the market between 30 and 60 days, up from about 1800 a month earlier.

Melbourne’s 30 to 60 day listings increased to 5280 in March, from just over 2100 in February.

But despite the wave of homes for sale, many vendors were unwilling to cut their asking prices to secure a sale.

Capital city asking prices for houses rose 0.7 per cent over the month of March to $990,500, SQM found.

Sydney house sellers expected 0.5 per cent more than in February, while Melbourne house sellers’ expectations rose 1.7 per cent, Perth rose 1.4 per cent and Canberra lifted 0.4 per cent. Brisbane bucked the trend, with house price expectations slipping 0.1 per cent.

“Quite a number of vendors have not really adjusted their pricing expectations as yet,” Mr Christopher said.

The figures come amid a rapid change in economic sentiment, with the previously rebounding housing market now met with the uncertainty of the coronavirus-linked economic hibernation.

Real estate agents and the public have been fast adapting to new social distancing measures that provide for private home inspections rather than open homes, and virtual auctions instead of physical auctions.

The number of homes listed for sale across the country increased by 3.7 per cent in March from the previous month, but listings are still 13.2 per cent lower than a year ago when a glut of unsold listings were languishing on the market during the housing downturn.

Sydney recorded a 10.5 per cent jump in listings in March, from February, while Melbourne rose 5.7 per cent, Brisbane 3.9 per cent, Perth 8.5 per cent and Canberra 11 per cent, SQM found.