- Property listings in Sydney have grown by 21.8% over the past year to 25,903.
- While total listings are the highest they’ve been at this point in the year since 2012, new listings are actually lower than in recent years.
- Should that lead to a decline in total listings in the months ahead, and demand not weaken any further, it could help to cushion price declines over this period.
Property listings in Sydney have grown substantially over the past year, lifting by 21.8% to 25,903, according to data from CoreLogic.
With tighter lending standards crimping demand, the substantial increase largely reflects that it’s taking longer for properties to sell in the current environment.
It’s a buyers market, at least for those with existing capital or who are able to obtain finance, with Sydney’s median home price falling 4.5% over the same period.
As seen in the excellent chart below CoreLogic, the last time there were this many listings in Sydney was back in 2012, another period when prices were falling.
However, while total listings are currently above the levels seen in recent years, new listings — defined as a property that has not been advertised for sale within the past six months — are doing the exact opposite.
They’re below the usual levels for this time of year.
It’s an interesting development, hinting that some potential vendors may be delaying or abandoning plans to go to market given how soft conditions currently are.
If that trends continues over winter, it could act to support prices should total listings start to decline and demand not weaken any further.
It’s only a hypothesis at this stage, but it’s a trend worth watching over the rest of winter.
The chart of total listings above suggests the slowdown in new listings is starting to reduce the mount of stock on offer, as often happens during this period of the year.
While fewer new listings may act to cushion price declines in the months ahead, the true test for the market is likely to arrive in Spring when the number of new listings typically lifts.