Buyers, lured by the pause in interest rates rises, are keeping pace with the supply of homes offered for sale, even as the trend in new listings rises, analysis from CoreLogic shows.
“Although the trend in new listings has been rising, the total listing trend has held reasonably firm across most cities. At the moment it seems like the extra supply coming on the market is being absorbed.”A significant imbalance between supply and demand fuelled the surprise rebound in prices in February, although the recent increase in fresh stock led to a slowdown in the pace of price growth in July.
Pat Bustamante, St George senior economist, said the stable interest rate environment could entice more buyers into the market.“Affordability has been reduced by the 12 rate rises, but we’re still getting higher wages and a strong job market, which could boost buyer’s borrowing capacity,” he said. The number of listings over six months fell by 6.9 per cent nationwide in July, with the bigger capitals posting around 10 per cent decline.