The imminent lifting of restrictions in Melbourne has sparked a wave of new offers in September, the latest figures from SQM Research show.

Melbourne’s new listings grew more than a factor in September, up 173.8% a year to 12,057.

On a monthly basis, this represents a gain of 9.9%.

Overall, the total number of ads across Australia, including properties listed for sale for more than 180 days, fell by 0.6% per month and 25.9% per year.

On a monthly basis, only Brisbane, Adelaide and Canberra recorded a decline, but stable growth in other cities prevented the total number of lists from falling further.

However, the total number of entries in most cities except Darwin was lower compared to a year ago, with Brisbane, Canberra and Hobart recording the largest declines.

New offers show sign of hope

While housing demand still exceeds current market supply, SQM Research Director Louis Christopher said the likely lifting of restrictions in lockdown-ravaged states will contribute to continued growth in housing supply in the months leading up to Christmas.

“The projected surge in advertisements before Christmas is unlikely to slow the housing market as low interest rates continue to boost the housing market and the expected economic upturn after the end of the lockdown is also likely to boost the housing market. housing,” said Christopher.

Aside from Melbourne, most other capitals added a significant amount of new housing stock during the month.

Only Sydney and Canberra registered fewer new offers in September than last year.

A property is considered a new listing if it has been on the market for less than 30 days.

On a monthly basis, there were gains across the board, except in Canberra and Hobart.

Asking prices rise

The data from SQM Research for the past 30 days to October 5 showed an overall increase in the asking price for homes.

In fact, the national asking price for homes rose 1.9% per month and 19.2% per year to $717,300.

For units, asking prices also rose to $443,000, 2% higher than last month and 11.7% higher than last year.

Compared to a year ago, asking prices for both housing types rose in capital cities, with the capital’s average being $1.15 million for homes and $582.5 million for units.

Growth was in line with CoreLogic’s latest price index, which showed the nationwide median home price rose 1.5% in September.

On an annual basis, the median price rose 20.3%, the highest in 30 years.

Low interest environment to support house prices

CoreLogic head of research Eliza Owen said the Reserve Bank of Australia (RBA) decision to: keep the spot price at its historical low will continue to support house price growth.

However, the credit restrictions are likely to be a major headwind.

“There is an increasing expectation that the housing loan space could undergo some macroprudential intervention,” said Ms Owen.

“In its statement today, the RBA referred directly to the importance of appropriate buffers to the usefulness of loans in the current environment.”

The most recent data from the RBA on the debt-to-income ratio of housing reflects the concerns that regulators have about lending.

As home loans grew 5.6% in the year to June 2021, the debt-to-income ratio grew, which is now at a record high for owner-occupiers at 102%.

Separate figures from the Australian Prudential Regulation Authority (APRA) show that about 22% of new mortgages have a debt-to-income ratio of six or more.

“While monetary policy could continue to support home value gains, there are headwinds to future housing market growth,” said Ms Owen.

“Affordability constraints already appear to be diminishing momentum in the market, with monthly real estate value growth rates likely to peak in March 2021.”

Photo by Advocator SY on Unsplash.