Listings still at second-highest point of the year, however
According to new data from Domain, combined capital new listings experienced a decline in November, following a 17-month high in October. However, they still reached their second-highest point for 2023.
This indicates an improvement in market conditions, as the near-full market recovery positively influences seller confidence, prompting them to list their properties, thus addressing the pent-up supply.
Melbourne currently has the highest total supply in the past 20 months, followed by Adelaide with a 12-month high, Hobart with an eight-month high, and Brisbane and Perth with a five-month high, Domain reported. Canberra also experienced its highest supply since early 2020. This suggests that supply is starting to increase as new listings rise at a faster pace than demand.
Interestingly, Darwin is bucking this trend, with total supply at its lowest point in almost two years.
Looking ahead to 2024, the upcoming autumn selling season will serve as a critical test for the market to determine if the supply will continue to build, according to Domain.
Days on market
In terms of the days on market (DOM), some markets have seen a decline. For houses, Sydney and Melbourne have witnessed a monthly increase in DOM. When compared annually, Melbourne, Hobart, and Darwin are taking longer to sell houses compared to 2022. On the other hand, Adelaide is experiencing the quickest time to sell houses since 2004, while units in Adelaide are selling at the fastest rate since 2008, Domain reported. This marks the fourth consecutive month of decreased DOM for houses.
Read next: Australia’s vacancy rate holds at record low in October – Domain
Perth houses have maintained a steady DOM since 2006, while Brisbane has also remained steady at its fastest DOM in over a year. Darwin, too, has witnessed a stable DOM at its fastest since January. The shorter DOM in these cities suggests a limited supply, leading buyers to compete for fewer options. Units, in general, are taking less time to sell annually in most cities, except for Canberra, Hobart, and Darwin.
Discounting rates
Moving on to discounting rates for private treaty sales, the outcomes vary across cities, according to Domain.
For houses, Brisbane has reached its lowest discounting rate in two years, Canberra, Perth, and Hobart have seen their lowest rates since mid-2022, and Darwin has experienced its lowest in nine months. Conversely, Adelaide is the only city to witness a monthly and annual rise in discounting for houses. Darwin also saw an increase in the discounting rate compared to the same time in 2022. Sydney and Melbourne observed an increase in discounting over November.
Regarding units, discounting rates have hit a low point since 2013 in Perth, a 20-month low in Sydney, and a 16-month low in Hobart, according to Domain.
Conversely, Brisbane has experienced its highest discounting rate in seven months. Canberra and Darwin have seen an increase in discounting for units compared to 2022, with Canberra and Brisbane being the only cities to observe an increase compared to October.
Distressed listings
Distressed listings continue to decrease across all capital cities, Domain reported. Despite concerns about the "fixed-rate mortgage cliff," households have managed to cope with the financial changes following multiple rate hikes.
Perth reached another record-low for distressed listings in November. Brisbane is currently at a 19-month low, while Sydney, Melbourne, and Canberra are at an 18-month low. Adelaide, Hobart, and Darwin are at a 14-month low for distressed listings.
Only a small number of SA3s across Australia are experiencing higher distressed listings than last year, Domain reported. Blacktown in Sydney, Sunnybank in Brisbane, and Weston Creek in Canberra have the highest distressed listings.
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