New home listings across Australia jumped 18.7% month-on-month in May following the traditionally quieter April.
Despite the month-on-month bump, new PropTrack data showed that new listings were subdued compared to last year, down 16.8%.
Total homes for sale increased 2.2% month-on-month and 3.3% compared to the same time last year.
PropTrack Economist Angus Moore said activity in property markets bounced back across the country after the slower month in April, when public holidays affected property market activity.
“That said, May continued the trend of slower property market activity in 2023, relative to the pace seen in 2022. In part, that reflects just how busy property markets were during the start of 2022,” Moore said.
“With the autumn selling season now behind us, market activity is likely to be a little slower over the next few months during the typically quieter winter period, before picking up again for spring. While selling conditions are softer than a year ago, and activity has slowed, market conditions have improved from late 2022. Auction clearance rates remained reasonably firm throughout autumn and have picked up noticeably compared to the second half of 2022.
“Home prices increased in May for the fifth consecutive month. While the increases have been modest, they have been consistent, and it is a change from the price falls seen throughout much of 2022 when the RBA was raising interest rates rapidly. Further out, the fundamentals of housing demand remain strong. Unemployment has remained close to multi-decade lows for much of 2022 and into 2023.
“Wages growth, while running slower than inflation, has started to pick up, and there are signs inflation is starting to subside. International migration has also resumed, which will further add to housing demand, and rental markets are extremely tight across the country.”
Both Sydney and Melbourne recorded fewer new listings this May compared to last year, down 17.5% and 19% respectively.
Hobart continued to be one of the more active capital city property markets, but even so new listings were down 6.6% compared to last year.
Regional areas also saw new listings increase 16.1% month-on-month in May but decrease 12.6% year-on-year.