Sydney Listings Surge Heralds Weak Autumn Market

Sydney's significant rise in property listings may shift the market this autumn, creating opportunities for buyers but challenging sellers. With listings hitting a six-year high and more properties from the 2021-2022 market boom entering the market, the dynamics appear to favour buyers as competition among sellers intensifies.

The NSW capital experienced a 19% year-on-year jump in listings for December, reaching its highest level since 2018, according to Domain data. This increase is further echoed across other major Australian cities, contributing to what seems to be a nationwide slowdown in property prices. Experts suggest this heightened stock gives buyers more negotiating power and time to weigh their decisions.

While Sydney is leading this trend, the increase in national listings also hit a three-year peak in December. Capital cities collectively saw more properties entering the market during the spring selling season, with many unable to secure sales in prior months. Reports also indicate that 30% of properties listed in Sydney had been previously purchased during the recent market boom, signalling a growing number of sellers eager to offload homes.

On a broader scale, median dwelling values have largely flattened in Sydney and Canberra, with smaller capital cities seeing modest growth. Perth stands out as an exception, with steady growth positioning it as potentially reaching a median home value of $1 million by the end of the year. However, affordability challenges may begin to temper this growth across the board as financial pressures mount on buyers.

The property market could shift quickly if borrowing costs ease. Lower interest rates could prompt an influx of buyers, potentially reducing the current excess supply and creating a more competitive environment. For now, Sydney's market seems poised for a quieter, buyer-friendly autumn.

Source: Australian Financial Review, Realestate.com, Domain