According to Eliza Owen, head of Australian research at CoreLogic, new listing volumes in Melbourne have "exploded" since private on-site inspections began on September 28.
"The result is likely due to months of pent-up sellers' decisions to sell and reflects how the real estate transaction process has remained tied to physical inspections," Owen explained.
The number of new listings in Melbourne increased by around 330% in the four weeks ending October 18, to 6,974 from the 1,606 listed in the four-year period. previous weeks.
“The trend over time shows that new registrations are dropping to levels below the New Years holiday period amid the restrictions in Steps 3 and 4. After the four week period ending September 27, new registrations have rebounded significantly, ”said Owen.
"After months of restrictions, pent-up demand from sellers has accumulated so much that more inventory has recently been added for sale in Melbourne than in any other area of ??the capital."
In the greater Melbourne area, 39 of 40 regions have seen an increase in new registrations over the past four weeks.
Although the rise in numbers looks positive, suggesting a return in consumer confidence, Owen acknowledged that the significant rise in new inventory could mean various things for the state of the market.
"The 'forced' sale was a possibility of the pandemic, as significant job losses in Victoria may have limited the ability of some households to continue paying their mortgages," she said declared.
"The latest RBA Financial Stability Review noted that October was the time when most mortgage deferrals were due to expire, which may have contributed to an increase in new listings in the in recent weeks. "
However, it might not be so dark.
"A sharp increase in inventory may also be a sign of a market rebound, as sellers sell to meet growing demand." Strong buyer demand can also mitigate the risk of struggling sales, as the additional demand drives up prices, ”Owen continued.
In the four weeks ending October 18, new inventory added to the market increased by 5,370, but the change in total inventory was only 4,790, suggesting buyers are active and that part of the shares in the market is bought.
Additionally, during the week ending October 18, the final auction clearance rate in Melbourne was 60.2%, even though it was the largest volume of auction in Melbourne. 39; auction seen in two months.
"It is clear that even after long and strict restrictions sellers are keen to sell," Owen said.
"However, due to the time lag between an initial listing and a sale, it will be a few weeks before we can understand how strong the appetite of buyers is," she concluded.
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