In good news for buyers, new listings have rebounded nearly 20 per cent last month, however, the flow of fresh levels is still lower than the same time last year.
According to the PropTrack Listings Report May 2023, new listings on realestate.com.au increased 18.7 per cent in May.
Sellers were most active in Hobart, where new listings surged 27 per cent, followed by Darwin at 25 per cent and Sydney at 24.6 per cent.
However, compared to the same time last year, new listings are still 16.8 per cent lower.
Overall, the total number of listings continue to rise, up 2.2 per cent compared to last month, 3.3 per cent compared to a year ago and 10 per cent higher than in the latter half of 2021, when the market was at its peak.
PropTrack Economist, Angus Moore, said activity in property markets bounced back across the country after the slower month in April when public holidays affected property market activity.
“May continued the trend of slower property market activity in 2023, relative to the pace seen in 2022,” Mr Moore said.
“In part, that reflects just how busy property markets were during the start of 2022.
“With the autumn selling season now behind us, market activity is likely to be a little slower over the next few months during the typically quieter winter period, before picking up again for spring.”
Mr Moore said while selling conditions are softer than a year ago, and activity has slowed, market conditions have improved compared to late 2022.
“Auction clearance rates remained reasonably firm throughout autumn and have picked up noticeably compared to the second half of 2022,” he said.
In the capital city markets, new listings were up 20.5 per cent, higher compared to the previous month, but were down 19.2 per cent compared to the same time last year, according to the report.
Both Sydney (17.5 per cent) and Melbourne (19 per cent) recorded fewer new listings this May compared to last year.
Listings are on the rise in Hobart, however, they were still down 6.6 per cent compared to last year.
While, regional areas also saw new listings increase in May, up 16.1 per cent compared to April.
In the regions, market activity has not kept pace with the busy period in 2022, with new listings down 12.6 per cent compared to the same time last year.
Mr Moore said sentiment across property markets has been increasing, with prices increasing five months in a row.
“While the increases have been modest, they have been consistent, and it is a change from the price falls seen throughout much of 2022 when the RBA was raising interest rates rapidly,” he said.
“Further out, the fundamentals of housing demand remain strong.
According to Mr Moore, low unemployment continues to add confidence to the market.
“Wages growth, while running slower than inflation, has started to pick up, and there are signs inflation is starting to subside,” he said.
“International migration has also resumed, which will further add to housing demand, and rental markets are extremely tight across the country.”