Low Listings Lift Buyer Pressure
New figures showing the number of listings of homes for sale has hit its lowest level in three years.
SQM Research figures show new home listings dropped 19.6% over January.
Managing director Louis Christopher says January is traditionally a quiet time for listings but the numbers are down for this period.
“It is no surprise we recorded a fall in activity over this month – however, there’s also a steep drop of 13.8% in new listings nationwide compared to a year ago,” he says.
Christopher says owners who think it’s a bad time to sell are holding off from listing in the hopes of a market recovery.
“Many vendors don’t have the need to sell, so even if it’s a buyers’ market, there are fewer options and there’s more competition for those that are listed for sale,” Christopher says.
In the past year new listings have dropped by 28% in Melbourne, 20.5% in Sydney, 19% in Perth and 13% in Brisbane.
Vacancy Rates Fall Further
Vacancy rates continue to fall, dropping in all capital cities except Hobart.
The national vacancy rate now sits at just 0.8% according to Domain.
Its latest rental report shows that Sydney and Melbourne’s vacancy rates have dropped to a record low 1%. The market is even tighter in Perth and Adelaide where the vacancy rate has dropped to just 0.3% while Brisbane sits at 0.8%.
Darwin and Canberra are 1.3% and 1.5% respectively.
Hobart is the only capital city to record an increase in vacancy rates, up marginally to just 0.5%.
Rental listings are down 36% on this time last year.
The report says the return of international and domestic travel, overseas migration and foreign students, and the recovery of temporary visa holder numbers is contributing to the tight market.
Recent changes by China’s Ministry of Education to stop acknowledging degrees gained online will also result in a surge in demand for rentals as students return for in-person classes.