Why Sellers Still Have The Advantage In The Current Market
Sellers continue to benefit from the current conditions in Australia as home sales continue to outpace new listings, according to CoreLogic. The sales-to-new listings ratio hit 1.4 over the three months to July, suggesting strong selling conditions.
This means that for each dwelling added to the market, more than one gets sold. The ratio has trended over one since June 2020, when HomeBuilder was first announced. To put that into perspective, the sales-to-new listings ratio averaged 0.9 over the past decade, making the recent figure a significant indicator of a sellers' market.
All capital cities recorded a sales-to-listings ratio higher than one, with Adelaide reporting the highest at two. Cities that imposed lockdowns in July registered a spike in the ratio, but this could be due to some sellers postponing their listings. CoreLogic head of residential research Eliza Owen said the sellers' market is being driven by the surge in demand for homes which is influenced by several factors, including low mortgage rates, an increase in savings, and more activity from first home buyers and investors.
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