Despite expectations that the housing market is slowing, a new report found demand is still outpacing supply.
REA Group analysed new and active listings on realestate.com.au and director of economic research Cameron Kusher said buyers are still bullish.
“With demand at heightened levels, residual stock for sale continues to be sold, reducing the active supply,” Kusher said.
“Therefore, active listing volumes continue to drift lower highlighting strong demand. This demonstrates that despite rising prices and some steam coming out of the market, we are still seeing strong buyer activity.”
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New listings around the country fell 6.9 per cent between March and April, but it was still the second-highest number of new listings since October 2019.
“I expect property prices will continue to rise, however, with a better balance between demand and supply it’s reasonable to anticipate that the rate of price growth will slow over the coming months,” Kusher said.
All capital cities except Sydney and Darwin saw less new listings in April, compared to March, as did all regional areas.
Sydney new listings rose by 1 per cent to reach the highest volumes since October 2018, while Darwin new listings increased by 9.3 per cent month on month.
“Unsurprisingly, given we were amid the national lockdown a year ago, new listings in April 2021 were higher than a year earlier across all capital city and regional areas of the country,” the report said.
Australia’s regional market has seen home prices grow 13 per cent over the last 12 months, compared to 6.4 per cent in the capital cities.