The property market typically slows during the winter months, with activity picking up again at the start of spring.
This year, however, the market has remained buoyant throughout winter with sales, listings and demand all up compared to last year.
Sales in July increased by 19% compared to last year but remain 9% lower than their peak in 2021.
In contrast to 2022 and 2023, where sales dropped month-on-month from June to July, this year recorded a 10% uptick, which is highly unusual for this period.
In July, sales were 16% higher than the five-year average.
Cities like Hobart, Brisbane, Adelaide, and regions like the ACT have experienced robust growth compared to last year, while Melbourne, Sydney, and Perth had moderate increases.
The only city where sales declined compared to last month was Melbourne, while the ACT remained unchanged.
Contributing to the increase in sales has been a rise in the number of available properties for sale.
In July, there were 12% more new listings on realestate.com.au than during the same period last year. More choices mean a higher likelihood that potential buyers will make a purchase.
In the combined capital cities, there was a 14.4% increase in new listings, while regional Australia had a 7.9% uptick.
Perth had the largest growth in new listings in July, increasing by 16.5%. Despite a significant housing shortage exacerbated by high demand, new listings are quickly snapped up, with total listings in Perth down by 20.2% compared to last year.
All other cities except Darwin had an increase in new listings in July and experienced year-on-year growth.
The rise in new listings has led to an increase in scheduled auctions compared to last year.
The number of scheduled auctions in July increased by 17% compared to the same period in 2023 and were also higher than in 2021 and 2022.
Sydney and Melbourne recorded double-digit growth in scheduled auctions in July, but Brisbane led with a 34% increase.
In July, auction clearance rates were slightly lower than last year, suggesting that buyers are still cautious about the market and hesitant to overpay for property.
The increase in listings and a decrease in demand in Sydney and Melbourne, where most auctions take place, have contributed to lower clearance rates.
However, Brisbane defied the trend with a slight increase in the average weekly clearance rate over the past month.
It’s worth noting that private sales make up the majority of transactions, and auctions are predominantly held in Sydney, Melbourne, and Brisbane. Thus, slightly lower clearance rates don't necessarily indicate that properties aren't selling.
Year-to-date, 13% of sales occurred at auctions, with the remaining sold by private treaty.
Demand for properties has remained strong this winter, with an average of ten enquiries per listing in July. This is equal to July 2023 and slightly higher than 2022. Given the increase in listings in July 2024, overall activity was higher.
Adelaide and Brisbane lead in enquiries per listing, with 23 and 22 enquiries, respectively.
Demand remained high in Sydney although is down compared to last year, while Perth also experienced high demand, with enquiries per listing rising by 54% year-on-year.
Melbourne lagged with eight enquiries per listing in July, down 16% from the same time last year.
Despite increased listings in Melbourne, fewer buyers are in the market compared to other cities, as the city grapples with the highest property taxes in the country and a slower return in investors compared to the other states.
Activity in Hobart, the ACT, and Darwin remained subdued, with just five enquiries per listing. However, enquiries in Darwin and Hobart were slightly up compared to 2023.
Overall, we've seen a robust winter market across most capital cities, with higher than usual activity boosting all indicators.
A busy winter bodes well for the spring selling season starting in a few weeks, and with expectations of no further interest rate rises this year, buyers are likely to be out in force and remain active throughout the remainder of the year.
