Total Property Listings Fall in June
Figures released today by SQM Research reveal national residential property listings fell in June2022 by 1% to 221,571 properties, down from 223,859 in May.
The largest monthly falls in property listings were in Adelaide, Perth and Melbourne of 3.9%, 2.1% and 3.7%. Compared to 12 months ago, listings fell by 6.2%, with large declines recorded in Brisbane, Adelaide and Canberra of 17.5%, 20.6% and 8.3% respectively.
Nationally, new listings (Less than 30 days) fell 2.1% over June 2022 to 70,885 properties on the market, to be down 2.1% over the year. Melbourne, Sydney, Adelaide and Perth recorded the largest falls in new listings for the month, down by 14.4%, 9.4%, 8.4% and 7.5%. Over the year, new listings rose the most in Hobart by 38.5% and fell the most in Canberra and Sydney by 14.9% and 13.9%.
Property listings over 180 days rose by 1.6% in June 2022. However, Canberra recorded a significant increase of 14.6%. While Darwin, Hobart and Adelaide recorded a decrease of 19.6%, 10.3% and 10%.
Louis Christopher, Managing Director of SQM Research said:
“Overall stock on market fell for the month largely due to the decline in new listings. The fall in new listings was a result of reduced vendor confidence in the strength of the housing market as well as seasonal factors whereby the winter period normally records a decline in residential property sales activity, particularly for Sydney and Melbourne.
However, older listings rose. This reveals the slowdown in the housing market driven by lower buyer demand. Going forward we expect July to record similar trends of lacklustre activity and more rises in older listings. At this stage we can safely state there is no panic in the market. The downturn remains orderly, but it is evident from SQM’s asking prices series vendors are adjusting their market expectations down, particularly for the Sydney housing market. Meanwhile cities still recording strength include Adelaide and to a lesser extent, Brisbane, and Canberra. All other cities are now showing signs of weakening.”
As part of today’s release SQM Research notes that as of 29 June, 2022 there were 6,014 residential properties nationwide selling under distressed conditions. This was up from 5,753 distressed listings recorded on 31 May 2022. On 30 June 2021 there were 7,656 properties selling under distressed conditions.
It is estimated prior to Covid (January 2020), distressed listing counts were approximately 15,000 listings nationwide. With interest rate cuts, relief provided to borrowers by the banking sector and massive government stimulus, the counts of distressed listings fell significantly over the Covid period.
However, since April 2022, the count of distressed property listings on the market has risen. The count reached a low of 5,500 distressed properties on the market back on the 5th of April 2022.