The real estate market is starting to lose momentum and is shifting from a seller’s market to a more balanced buyer and seller.
According to PropTrack, as the number of homes for sale increased in November, demand appeared to have declined as the number of views per listing on realestate.com.au declined.
Views per listing fell 9% in November, from an all-time high in October.
Meanwhile, weekly searches fell 16.2% in the past seven consecutive weeks.
Still, search volumes remained at an all-time high and were able to stabilize at their current levels in the coming months after the holiday slowdown.
Email inquiries to agents also fell in the month, down 22% to the lowest volume since July.
States emerging from lockdown recorded the largest drop in email inquiries to agents, with Victoria having the biggest slump at 45%, followed by New South Wales’ 21.7% drop and 26.5 drop. % of the ACT.
PropTrack economic research director Cameron Kusher said these are telling signs that some of the heat is coming out of the market.
“We are still seeing a lot of active buyers, but for the first time since the start of the pandemic, the surge in new offerings has given them more choice,” he said.
“Buyers continue to outweigh sellers in today’s market, but the gap is narrowing, meaning seller’s market strength is weakening.”
Mr. Kusher said demand is expected to decline further, given less disruption that could lead to a consistent supply of new offerings.
“It’s encouraging for buyers that competition for the housing stock should also decrease,” he said.
“Overall, we seem to be witnessing the early signs of a shift from an extreme seller market to one that is slowly moving towards more balanced buyer-seller conditions.”
Sales activity still stable
Last week, sales fell 1.7%, but remained 11.6% higher than the same week last year.
Mr. Kusher said the higher year-over-year sales show how much more activity there is currently in the market.
“Now that all states are out of lockdown, we are seeing an increase in sales,” he said.
“With more inventory available for sale and some signs of declining demand, year-end sales growth this year is apparently not as strong as last year, of course we could see an acceleration in sales during the last few weeks before Christmas. ”
Weekly sales so far this year are 59.4% higher than the same period in 2019 and 41.4% higher than last year.
Another important indicator is the median sales days.
In the past month, the median number of days a property was on the list was 30 days, still at an all-time low. In the same month last year, the number of days on the market was 44 days.
“While the seasonal increase in days on the property is approaching, as demand eases off peaks and supply increases, we expect it will likely take a little longer to sell properties than it is now, once the market returns in 2022,” said Mr. Kusher.
Top Suburbs: Werribee, Willoughby East, Berala, Mt Gravatt, Trott Park
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