Buyers Are Back in The Driver’s Seat as Stock Levels Surge to Their Highest Level Since 2012

The seasonal surge in listings is underway, with new listings added to the market up by 16% in comparison to the end of winter according to CoreLogic. However, despite the increase in new listings, the addition and tracking of fresh stock are down almost 4% in comparison to this time last year. Making it to be the lowest since 2012. This low level of new listings can be attributed to weak vendor confidence, which has been produced by weakened housing market conditions and more challenging selling conditions.

Despite low volumes of freshly advertised stock, the number of total advertised listings has been increasing as absorption rate slows. According to CoreLogic, if the current trend continues, we will see the number of properties available for sale exceed the recent 2012 peak in total advertised stock levels.  The total number of listing numbers are 10.2% higher than a year ago and are at their highest for this time of the year since 2012.

The rise in total listing numbers isn’t due to a panicked surge in new listings.  This is more about less demand causing a rise in relistings and longer selling times and fewer successful sales at auction.

The typical capital city dwelling sold by private treaty is now taking 53 days to sell in comparison to 42 days a year ago. Discounting rates have risen to an average of 6.5%, up from 6% a year ago.

More stock means more choice for buyers and harder selling condition for vendors - producing what is essentially a buyers’ market.  Buyers have little sense of urgency under these conditions, allowing them to: negotiate hard, take their time to make a purchase decision, and if they feel a property price doesn’t reflect fair value, easily move onto the next property option.  With so much competing stock on the market, vendors will need to be reasonable with their pricing expectations and ensure their marketing campaign is as effective as possible to stand out from other stock for sale.