Buyer's Agents | Property Investors | Home Buyers | Adviseable

Spring selling season listings still underwhelming

The traditional “spring selling season” started on 1 September this year with a flurry of new listings hitting the market – as is the usual turn of events.

However, before anyone start’s shouting “It’s a buyer’s market!”, the cold hard truth is that there still remains an undersupply of decent properties available for sale – especially in hot markets like Adelaide and Perth.

Listings up but still down over the year

The latest figures by SQM Research have revealed that national residential property listings rose in August by two per cent to 224,530 properties, up from the 220,081 recorded in July.

The increase was driven by surges in new listings for most capital cities as the spring selling season gets under way.

But over a 12-month period, residential property listings nationwide decreased by 1.9 per cent, which was a common trend, with most cities seeing fewer total listings for the year.

And if we drill down into the situation in Perth, the SQM Research data found that total property listings are down a whopping 20.8 per cent compared to the same period last year and in Adelaide they are down 5.5 per cent. Likewise, in Brisbane, the total number of property listings have reduced 12.2 per cent over the past year.

This is certainly the reality of what we are seeing on the ground in these markets where multiple offers are the norm, and some buyers are making silly decisions by overpaying for inferior properties without doing a smidge of due diligence either!

Alas, those decisions are likely to hurt them financially in years to come.

Prices heading north

It’s clear that property prices are headed up, with the latest data showing solid increases in most major markets – apart from Hobart.

This trend is further highlighted by SQM Research’s asking price data, which found that property sellers were more confident over the month of August in the capital cities with asking prices rising by 0.9 per cent to stand 7.2 per cent higher compared to August last year.

Asking prices in Sydney rose by 1.1 per cent, Melbourne rose by 0.2 per cent, indicating a little more caution by Melbourne vendors.

Perth recorded the fastest rises in asking prices, rising by 1.6 per cent for the month to be up a 10.7 per cent for the past 12 months.

At times like these, when listings are low and demand is high, we start to see some curious activity in the market – and what I mean is “off-market” listings in booming areas.

Just think about that for a moment. Why would any vendor want to sell their property off-market when they are likely to attract oodles of potential buyers?

Sometimes, sure, it is because they value privacy over anything else, but those instances are rare.

Frequently, though, they are trying to sneakily offload an inferior property under the radar by using the guise of an “off-market” opportunity.

Unfortunately, I am seeing quite a few uneducated buyers being caught out by this strategy at present because FOMO is driving their poor decision-making.

So, where does this all leave us?

Well, as professional buyers’ agents, we are still able to purchase many of the best opportunities out there because sales agents recognise that our clients have their finance pre-approved and they don’t have to sell their own home, for example, to buy their next one.

That means that we are able to beat out many other purchasers in markets where vendors have their pick of buyers at present. 


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