New Listings Disappear Amid Market Shift
The Australian property market experienced a dramatic 64.6% decline in new listings during December 2023, with Sydney leading major markets at a 65.9% decrease. Capital cities averaged a 61% month-on-month reduction, while regional areas saw a 33.5% drop in listings. Despite the seasonal slowdown, year-on-year data showed a 12% increase in new listings, indicating stronger underlying market conditions. Total properties for sale decreased by 21% month-on-month but rose 2.6% year-on-year, suggesting a transformative shift in market dynamics. This significant market adjustment signals important changes ahead for buyers and sellers in 2024.
Highlights
- New property listings plunged 64.6% in December compared to November, with Sydney leading the decline at 65.9%.
- Capital cities experienced a dramatic 61% month-on-month decrease in new property listings during December.
- Regional areas saw a significant 33.5% drop in monthly listings, reflecting a broader market slowdown.
- Total properties available for sale fell 21% month-on-month, despite being up 2.6% compared to last year.
- The December market slowdown affected all regions, though year-on-year data shows 12% more listings than previous year.
December's Market Slowdown
While December traditionally sees a slowdown in real estate activity, the 2024 market experienced a particularly sharp decline, with new listings plummeting 64.6% compared to November.
Sydney led the downturn with a 65.9% decrease, reflecting typical December trends across major markets.
The festive impact was evident in both metropolitan and regional areas, with capital cities recording an average 61% month-on-month decrease in new listings.
"The December slowdown follows historical patterns, though this year's decline was strikingly pronounced," explains Cameron Kusher from REA Group.
Despite the monthly drop, the market maintained a 12% year-on-year increase in new listings, suggesting overall stronger market conditions compared to the previous year.
Regional areas also felt the seasonal effect, with new listings falling 33.5% month-on-month across the country.
Buyers Gain More Options
Despite the December slowdown, the increased volume of new listings throughout 2024 has greatly expanded options for prospective buyers. According to Cameron Kusher from REA Group, this shift has allowed buyers more time to evaluate properties and negotiate terms that align with their preferences.
The extended selection has influenced buyer preferences and market competition, with days on market increasing as purchasers take advantage of their improved bargaining position.
"The current market conditions are providing buyers with unprecedented choice," notes Rachel Lawrie from Stadium Real Estate, who observed diverse buyer demographics including downsizers and interstate investors actively participating in the market.
The broader range of available properties has contributed to moderating price growth, creating a more balanced market environment where buyers can make informed decisions without undue pressure.
Regional Performance Updates
As regional markets adjusted to shifting conditions, new property listings exhibited notable declines across various areas, with Regional SA experiencing a substantial 26.5% month-on-month decrease.
The regional trends reflected broader market shifts, with national regional listings falling 33.5% month-on-month.
Analysis of listing variations across regional areas revealed complex patterns, with total listings decreasing by 5.7% over the past month.
However, year-on-year data showed a 4.7% increase in total regional listings, indicating longer-term growth despite short-term fluctuations.
"The regional market dynamics demonstrate a rebalancing effect," notes Cameron Kusher from REA Group, "with current conditions providing opportunities for both buyers and sellers to make informed decisions."
Regional SA's year-on-year decline of 1.9% in new listings further highlighted the varying pace of market adjustments across different regions.
Price Growth Takes New Direction
Price growth moderated considerably throughout 2024 as increased property listings reshaped market dynamics.
Market experts, including Cameron Kusher from REA Group, indicate that expanded buyer choices have contributed notably to this shift in price trends, with further moderation expected in 2025.
Key factors influencing current price trends:
- Enhanced buyer negotiating power due to increased property availability
- Extended decision-making timeframes resulting from more listing options
- Diverse buyer demographics creating balanced market competition
The market has witnessed a transformation in buyer behavior, with investors, first homebuyers, and upsizers actively participating despite slowing price growth.
"The increased new listings provide better market conditions for buyers," notes Kusher, reflecting a market that has evolved from the intense competition seen in early 2024 to a more balanced environment.
Market Dynamics Shift Gears
While new property listings plummeted by 64.6% in December, this significant drop reflects a broader transformation in market dynamics rather than market weakness.
Market expert Cameron Kusher notes that shifting buyer preferences have contributed to extended decision-making periods, with days on market increasing as buyers navigate more options.
The evolving listing trends throughout 2024 have created a more balanced market environment, with total properties for sale down 21% month-on-month but up 2.6% year-on-year.
"The increased new listings provide better market conditions for buyers," explains Kusher, highlighting how the market has adapted to accommodate diverse buyer demographics.
This shift has particularly benefited first-home buyers, investors, and upsizers, who have remained active participants despite the seasonal December slowdown in new listings.
