The real estate market begins to run out of steam, shifting from a sellers market to a more balanced market between buyers and sellers.
According to PropTrack, as the number of homes for sale increased in November, demand appeared to have eased as the number of views per ad declined on realestate.com.au.
In fact, the number of views per ad fell 9% in November, down from the all-time high reached in October.
Meanwhile, weekly searches have declined 16.2% over the past seven consecutive weeks.
Nonetheless, search volumes have remained historically high and may remain stable at their current level for the next several months after the vacation slowdown.
Email inquiries to agents also declined during the month, down 22% to the lowest volume since July.
States emerging from lockdown saw the largest decline in email inquiries to agents, with Victoria recording the largest decline at 45%, followed by New Wales' 21.7% drop from South and the 26.5% drop in ACT.
PropTrack's director of economic research Cameron Kusher said these signs point to some of the heat coming out of the market.
"We are still seeing many active buyers, but for the first time since the start of the pandemic, the surge in new listings has given them more choices," he said.
"Buyers continue to outweigh sellers in the current market, but the gap is narrowing, which means that the strength of the sellers market is weakening. "
Mr. Kusher said demand is expected to decline further given the decrease in disruptions that could lead to a consistent supply of new listings.
"Encouraging for buyers, the volume of competition for housing stock is also expected to ease," he said.
“Overall, we seem to be seeing the first signs of a shift from a market of extreme sellers to one that is slowly moving towards more balanced conditions between buyers and sellers. "
Commercial activity still strong
During the past week, sales fell 1.7% but remained 11.6% higher than the same week last year.
Mr. Kusher said the higher year-over-year sales show just how much more activity there is in the market now.
“With all the states that are no longer stranded, we are seeing increased sales,” he said.
"However, with more inventory available for sale and some signs of weakening demand, the surge in sales at the end of the year this year is apparently not as strong that last year, of course, we could see an acceleration in sales in the last few weeks leading up to Christmas. "
So far this year, weekly sales are 59.4% higher than the same period in 2019 and 41.4% higher than last year.
Another important indicator is the number of median selling days.
Over the past month, the median number of days a property remained listed was 30 days, still at an all-time low. In the same month of last year, days to market were 44 days.
"As the seasonal increase in on-site days arrives, with demand falling from highs and supply of stock increasing, we would expect this to happen. that properties probably start to take a little longer to sell than they currently do once the market returns in 2022, "Kusher said.
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