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With the mismatch between supply and demand pushing prices higher, an expert believes new listing numbers could see a more substantial lift in March as agents increase their level of activity.
New listing numbers are predicted to get a substantial boost in March, CoreLogic’s research director, Tim Lawless, said, with available supply currently at record-low levels.
CoreLogic’s most recent measure of total listing numbers continues to see advertised supply significantly below that of recent years. The number of properties advertised for sale nationally remained 26.2 per cent below 2020 levels over the 28 days ending 21 February.
But, while supply is being exhausted, the quarterly number of home sales is estimated to be up 35.3 per cent on 2020 levels, with regional dwelling sales 40.6 per cent higher compared with a 32.0 per cent lift in capital city sales.
The past six months has seen CoreLogic’s estimate of settled house sales rise to be 17.9 per cent above the decade average. Settled unit sales have also trended higher, but remain slightly below the decade average (-0.8 per cent) again reflecting the falling demand for higher-density styles of properties.
“Housing inventory is around record lows for this time of the year, and buyer demand is well above average. These conditions favour sellers,” Mr Lawless said.
“Buyers are likely confronting a sense of FOMO, which limits their ability to negotiate. Vendor discounting rates were estimated at a record low of 2.6 per cent in February, and auction clearance rates have consistently been in the high 70 per cent to low 80 per cent, which is well above average.”
But based on a 19.5 per cent rise in CMA reports, which are used by real estate agents to prepare a property for listing, Mr Lawless predicted a lift in new listings, with around a two-week lag.
“Although new listings are likely to track higher over coming months, if buyer demand continues to lift, it’s likely overall advertised stock levels will remain low,” Mr Lawless said.
“Serious buyers would be well advised to have their financing pre-approved and be ready to act fast in order to secure a property under such tight supply conditions.”