Home buyers have power in Sydney property market as listings jump to 3-year high

A spike in property listings and discounted prices have created an improved climate for home seekers to snap up better deals this spring, a new report shows.

A spike in property listings, coupled with discounted prices and declining buyer demand, is helping home seekers snap up better deals this spring.

PropTrack’s August Listing report published Thursday showed real estate listings jumped to their highest number in three years last month.

The supply of housing for sale was also 43 per cent higher than it was at the same time last year when Sydney was still in the throngs of a lockdown. It was the biggest annual increase on record.

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Listing numbers remain well up on the years prior to the Covid outbreak, with PropTrack noting Sydney homebuyers had 10 per cent more properties to choose from compared to the decade-average.

Listings are at a three-year high across Sydney. Picture: Gaye Gerard

Experts said the greater supply of properties was taking pressure off buyers to bid up prices and, along with other developments in the market, helped switch Sydney to a buyer’s market.

PropTrack economist Angus Moore said the Sydney increase in listings was similar to increases recorded in other capitals.

“Activity in property markets around the country ramped up in August ahead of the spring selling season,” he said, adding that it was a “busier than usual” winter market.

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“Selling conditions have tempered from their very strong levels earlier in the year,” he said.

The greater supply of housing is helping buyers.

“Measures of buyer demand have moderated, it is taking longer to sell homes, and auction clearance rates have fallen … (it’s) helped make conditions a bit less competitive for buyers.”

Mr Moore said this environment and rising interest rates would continue to push down property prices.

Sydney home prices have fallen for five successive months and are now, on average, cheaper than they were a year ago, according to PropTrack’s Home Price Index released earlier this month.

Sydney price drops were the biggest of any capital city over the period.

“Home prices have continued to decline in most cities after growth hit multi-decade highs in 2021,” Mr Moore said.

“The Reserve Bank of Australia has continued to raise interest rates at a brisk pace, with a fifth consecutive interest rate rise in September, which has brought the cash rate up more than two percentage points in just five months.

The increased supply of listings has meant homes are taking longer to sell. Picture: Gaye Gerard

“The RBA is likely to continue raising rates over the course of 2022, which will reduce borrowing capacities for prospective buyers and place greater downward pressure on prices in the near-term.”

Mr Moore cautioned that a significant fall or collapse in prices would be unlikely as there were still plenty of buyers in the market.

“While market conditions have changed, the fundamental drivers of demand remain strong, with unemployment very low, wages growth expected to pick up over this year, and migration increasing,” he said.

“With that in mind, we’d expected to see activity pick up over the next few months as we head into the typically seasonally busy spring season.”

Originally published as Home buyers have power in Sydney property market as listings jump to 3-year high