Spring was a busy season for many sellers across Australia, but can the same be said for buyers?
The latest report from CoreLogic showed that the number of listings in the three months to November averaged around 39,000 per month. This was 20.8% higher than in the winter months.
"Overall, the sales-to-new-listings ratios indicate that an increase in listings activity over the spring period was met with high demand, despite Australians being in the wake of technical recession. Record-low mortgage rates and a rebound in consumer sentiment has likely had a lot to do with this," said Eliza Owen, head of residential research at CoreLogic.
Darwin has the highest sales-to-new-listings ratio of all capital cities in November at 1.4. At the start of the spring selling season, the ratio was at 1.7.
"This is reflective of the start of a rebound across the Darwin market, where dwelling values had seen a long, large correction off the back of the end of the mining boom," Owen said.
However, while the market seems to be moving towards recovery, values in the city are still 24.7% below the peak in May 2014.
The sales-to-new-listings ratio also remained elevated in Sydney at 1.3.
"The relatively strong result through November was the result of an estimated 3.7% increase in sales volumes over the month, as listings fell by 11.3%. This indicates rising demand for property across the Sydney market, where values increased 0.4% in the same month," Owen said.
Melbourne had the weakest performance over the month, with its ratio sitting at 0.5 over the month. This suggests that there was more stock available for buyers across the city.
However, while the low ratio and the higher median days-on-market in Melbourne seem to indicate a weak market, the city still registered a 0.7% gain in values during the month.
"This may be explained by record-low costs of mortgage debt, which has increased purchasing power, as well as the fact that the surge in new listings may be concentrated to particular areas of Melbourne which are seeing relatively low demand," Owen said.
Still, it is expected that as international travel arrangements rise over the next year, demand for properties in Melbourne will slowly increase.
"Until then, a rebound in this dwelling market may be subdued, particularly within the inner Melbourne unit market," Owen said.
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