Listings surge means less competition for home buyers: Domain

author-avatar By
on December 22, 2021 Fact Checked
Listings surge means less competition for home buyers: Domain

Sydney and Melbourne property markets have ended the year with a sharp slowdown, as a post-lockdown surge in homes for sale gives buyers greater choice.

According to Domain, a jump in properties for sale in Australia's two biggest property markets in recent months has resulted in less competition for homes.

This is putting downward pressure on auction clearance rates and reigning in rapid price growth. 

According to the report, new property listings last month rose by more than two thirds since lockdown in some areas.

In Sydney, Parramatta saw the number of homes listed for sale in November 88% higher than in September.

In Melbourne, Hampton, Brighton and Sandringham saw the biggest increase according to Domain, with new listings up 67% since September.

This rise in volume comes as welcome news for potential buyers, as the market begins to show signs of slowing down. 

Earlier this month, a report from REA group showed the property market is starting to balance out between buyers and sellers in the lead up to Christmas.

The PropTrack Housing Market Indicators Report for December showed the number of homes for sale increased in November, while viewings per listings declined.

PropTrack Director of Economic Research and report author Cameron Kusher said Australia’s housing market is experiencing elevated demand, resulting in high volumes of sales at rapid speeds.

"There are also signs that some of the heat is coming out of the market, with falls in enquiry and a decline in views per listing," Mr Kusher said.

“We are still seeing many active buyers, but for the first time since the pandemic began, the strong ramp up in new listings has given them more choice. Buyers continue to outweigh sellers in the current market, but the gap is narrowing, meaning the strength of the sellers’ market is softening.

"Demand is expected to ease from its strong levels; fewer disruptions due to lockdowns should lead to a consistent supply of new listings, and price growth is expected to slow.

"Encouragingly for buyers, the volume of competition for housing stock should also ease. Overall, we appear to be witnessing the first signs of a shift from an extreme sellers’ market to one which is slowly moving towards more balanced conditions between buyers and sellers."


Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
GREAT INTEREST RATE
  • Option to add an offset for 0.10%
  • No monthly or ongoing fees
  • Unlimited redraws
GREAT INTEREST RATE

Smart Booster Investor Bundle (Principal and Interest)

  • Option to add an offset for 0.10%
  • No monthly or ongoing fees
  • Unlimited redraws
Variable
More details
GET APPROVED FASTER WITH A DIGITAL APPLICATION
  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
GET APPROVED FASTER WITH A DIGITAL APPLICATION

Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)

  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
Variable
More details
BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS
  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS

Yard Investor Bundle Loan (Bundled with Home Loan)

  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
Variable
More details
100% FULL OFFSET ACCOUNT
  • Free redraw facility
  • Split account option
  • Unlimited extra repayments
100% FULL OFFSET ACCOUNT

Ocean Investment (Amounts < $1m, LVR < 60%)

  • Free redraw facility
  • Split account option
  • Unlimited extra repayments

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 25, 2022. View disclaimer.


Image by Steve Franklin via Unsplash

Latest Articles

author-avatar
Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy