Samantha Healy, 14 Jul 2022
A major sign that the property market might finally be turning back in favour of weary buyers has been revealed, with the number of dwellings being listed for sale in Queensland defying the usual winter slowdown.
The PropTrack Listings Report June 2022 has revealed that the number of new listings hitting the market in Brisbane soared 8.4 per cent in June compared to the same time last year, and was up 11.4 per cent annually.
And the number of new listings in regional Queensland also increased by 11.5 per cent in June, the busiest June period since 2014, while new listings were up 13.9 per cent over 12 months.
But while the total stock on the market saw an uplift during June, supply remained down on a year-on-year basis.
Nationally, new listings were down 3.1 per cent in June but were up 8.5 per cent over 12 months, the report revealed.
“June was a strong month relative to typical conditions,” PropTrack economist and report author Angus Moore said.
“There has been a brisk pace of new listings, with more new listings nationally across the first half of the year than during any year since 2015.
“While conditions are likely to slow a little as we continue through the typically quieter winter period, activity has remained robust in many markets.
“Though selling conditions broadly have begun to temper after a very strong spring 2021 and early 2022, fundamental drivers of demand remain strong, with unemployment low, wages growth expected to pick up over this year, and international migration now returning.”
Mr Moore said a combination of factors could be behind the uptick in listings, with the prospect of further rate rises and a drop in values also likely to be behind the rush to sell.
“Interest rate roses are likely weighing on both buyers and sellers,” he said.
“How far and how fast they move will be critical to what happens in the market.
“It is still tough (for buyers) in Brisbane but there is more choice now, and less competition so that’s potentially good news for buyers coming into spring.”
The Reserve Bank of Australia (RBA) hiked rates a further 0.5 percentage points on July 5, lifting the cash rate to 1.35 per cent.
That came after soaring inflation forced the RBA to end the record low run at 0.1 per cent in May, and consecutively hike up rates by 0.25 per cent (May) and 0.5 per cent (June). And those rate rises are unlikely to stop, or come down, anytime soon, according to many economists.
It comes as property values in Brisbane fell almost 0.1 per cent in June – the first drop since the start of the pandemic.
Mr Moore said there was little doubt that doomsday predictions of double-digit drops in property values were weighing on the minds of sellers.
But he added that similar predictions of a price crash at the state of the pandemic had not only failed to materialise, the exact opposite occurred, with extraordinary growth in prices almost everywhere.
“Finally, after growth hit multi-decade highs in 2021, home prices are falling in many cities,” he said.
“That (interest rate rises) will place greater downward pressure on prices.
“But for sellers, anyone who bought before the pandemic, they are still sitting on substantial equity.”
There are over 5600 properties listed for sale across the Greater Brisbane region, according to realestate.com.au.
Up north, buyers have over 1000 properties to browse in the Cairns region, and there are more that 1700 listed across the Townsville region.
On the Gold Coast and Sunshine Coast there are over 4300 and 2700 respectively, ranging from land and units to houses and duplexes.
Across Queensland as a whole, there are over 38,000 current listings, with properties under offer excluded.