Spring sees record number of homes for sale in major cities
A significant increase in residential property listings has been recorded across Australia, as sellers seek to benefit from higher prices and robust demand.
According to the latest REA Group Listings Report, new property listings nationwide climbed by nearly 22% in October compared to September. The capitals experienced a larger rise of 24%, while regional areas saw a 17.5% increase.
Sydney’s market saw the highest number of new listings in a decade, with volumes up 20% month-on-month and 6% higher than in October last year. This suggests more vendors are choosing to enter the market during favourable spring conditions.
Melbourne reported an even greater monthly jump, with new listings rising almost 30% – the most in a single month since November 2021 and the highest October figure on record.
Other capitals also saw notable increases in new listings, with Canberra up 42.4% and Adelaide rising 36.6% over the month. Despite the surge in new listings, the total number of homes for sale across the country remains 9.5% lower than a year ago. Perth, Brisbane and Darwin have experienced even sharper declines in total listings, down nearly 15%, 17% and over 38% respectively.
Angus Moore (pictured top), executive manager of economics at REA Group, attributed the lift in new listings to improved market sentiment and favourable conditions. “We’ve seen some rate cuts, buyer confidence is relatively good, and expectations for home prices are very positive,” he said. “That’s leading vendors to be a bit more confident in listing.”
The influx of new properties is providing buyers in Sydney and Melbourne with more options, although the total number of homes available remains lower than a year ago due to strong buyer activity.
Recent interest rate reductions and the expansion of the First Home Guarantee scheme have supported buyer demand, particularly among first-home purchasers.
Peter Diamantidis, real estate agent and director at Ray White United Group, noted the impact of these changes. “With rates coming down, what we find is there is more stock because people who were handcuffed because of serviceability and couldn't upsize now can,” he said.
Nationally, the median home value is now 7.5% higher than a year earlier, with prices reaching new peaks in most areas. Melbourne’s home values have surpassed their previous high from early 2022, while Sydney’s median price is up 6.4% year-on-year and Melbourne’s has increased by 4.2%.
Moore said the combination of rising prices and improved auction clearance rates has encouraged more owners to list their properties. “We’re seeing consistent price growth, and that’s probably given vendors some confidence too,” he added.
With demand expected to remain strong and prices continuing to rise, current conditions appear to favour sellers. “Conditions generally are fairly good,” Moore said. “It’s a fairly healthy environment.”
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