In 2024, more homeowners listed their properties than in the previous two years, signalling increased seller confidence despite numerous interest rate hikes.
Nationally, new listings rose by 7.9% in 2024 compared to 2023, and increased by 8.9% against the five-year average.
Among the capitals, Canberra led with a 25% increase in listings over the five-year average, followed by Melbourne at 22% and Sydney at 18%.
These cities took longer to recover from the interest rate-driven downturn of 2022, with improved seller confidence emerging in 2024.
Growth in property listings
Other capitals experienced moderate listing growth, except Adelaide, which saw a slight decrease of 1%.
Adelaide’s property demand has remained high, boosting prices and pushing buyers to more affordable areas.
Perth, Brisbane, and Adelaide were resilient during the downturn, maintaining steady listing volumes.
This stability explains the less dramatic year-on-year and average growth in these cities.
Regional areas, 2024 saw subdued new listings growth, with regional Victoria leading at an 8% increase. Regional NSW, SA, and TAS each experienced 7% growth.
Melbourne and Sydney’s comeback in 2024 in terms of listings growth is reflected in the top regions for listings growth.
Sydney’s South West, which includes Liverpool, Cabramatta, and Austral, saw a 39% rise in listings, while the Riverina region in NSW was up 36%.
Regions with the largest percentage change in listings
Melbourne’s Inner region and Sydney’s Ryde also saw increases of 32% and 30%, respectively.
Sydney regions dominated the top growth areas, accounting for 50% of the top 10, with three Melbourne areas included.
Canberra, with a 25% rise, also featured in the top 10.
Conversely, regions with declining listings were all in regional Australia, led by Queensland’s Outback at -18%.
Regions with the smallest percentage change in listings
Toowoomba (QLD), Bunbury (WA), and Darling Downs – Maranoa (QLD) similarly experienced declines.
Several factors have motivated sellers in 2024.
The October Residential Audience Pulse Survey revealed that 39% of sellers thought that now was a good time to sell because it suited their own circumstances.
This could be multiple reasons from needing more space for a growing family, wanting to downsize, marriage, divorce, relocating to another city or state, and other reasons.
However, one in five were motivated by price, especially in areas where there has been significant growth in the past few years, in particular Perth.
The amount of equity amassed by homeowners provides them with an opportunity to make the move to a bigger property or better neighbourhood.
High interest rates and increased living costs have also prompted some sales as homeowners seek more affordable options.
Interest rates have significantly impacted the property market over the past two years, influencing both buyer and seller sentiment.
However, as the potential for a rate cut grows, optimism has increased among buyers and sellers.
All four major banks are forecasting a rate cut in February, which could boost market activity in the autumn and winter months.
Source: realestate.com.au
