A softening in real estate prices amid speculation of an imminent interest rate rise has caused property listings to fall according to Ray White Chief Economist, Nerida Conisbee.
A total 11,000 fewer homes were for sale in the March quarter than in the corresponding period last year.
“Sellers are no longer so keen to go to market,” said Ms Conisbee. “This means that although properties may be a bit cheaper, it is really hard to find one to buy.”
Ms Conisbee said she still believed conditions “are more in the favour of buyers” despite a decline in the supply of properties coming on to the market.
The biggest falls have been in Brisbane (3,700 fewer properties) and Sydney (2,500) – yet Ms Conisbee observes these two markets are behaving very differently.
According to CoreLogic, Sydney home prices fell for a second straight month in March – albeit by a low -0.2%, while Melbourne eased -0.1%. The combined capitals grew by just 0.3% in March, while the regions grew 1.7%.
The fact that Sydney has come off the boil – both in prices and listings – has persuaded many owners to delay plans to go to market, according to Ms Conisbee. Perth owners were showing similar hesitancy.
Meanwhile, Brisbane continued to experience price growth with a rise of 2.0% for March with the total number of listings falling as buyers snapped up properties faster than new homes were being listed.
Some of the steepest declines could be seen in Melbourne’s CBD and its university suburbs, Carlton, near Melbourne University and Clayton, which is close to Monash.
Rents and prices in the Melbourne CBD fell 30% during the pandemic, but Ms Conisbee said she believed the worst was over.
“Now the borders are open again, it is likely we are at the bottom of (that) market,” she said. The drop in listings could be a sign that investors now see value in holding properties in the city and near universities.
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