The number of homes for sale across Australia is at a 10-year low, with new listings increasing only marginally in the month of September and overall stock for sale actually falling. This is highly unusual for the first month of Spring, which is traditionally our busiest selling season.
This low supply is due to a growing absorption rate, which means homes are selling faster than they can be replaced by new listings. Low supply is generating some FOMO due to high pent-up demand, with many buyers still looking for a new home. Now they’re having to compete with new buyers attracted into the market by the small seasonal bump in new listings.
Supply is low for two key reasons. Firstly, owners who don’t need to sell are sitting tight. This is no surprise given uncertainty is high. Secondly, we haven’t seen any distressed listings because stimulus measures like mortgage repayment deferrals (8% of loans), access to super ($34.3 billion withdrawn by 4.5 million members) and JobKeeper (4 million recipients) are supporting households’ cash flow.
There’s also fierce bank competition to attract new customers through low mortgage rates and cashback deals to cover refinancing costs. Credit will flow more freely from January with changes to responsible lending rules making it easier to get finance.
This will have a direct impact on property by adding more buyers to the market and expanding their budgets, too.
If I can help you on your real estate journey in any way, please feel free to contact me at any time!
0417 265 251