The flow of new listings added to the Australian housing market has been rising since mid-June, in contrast to the usual seasonal trend, according to CoreLogic Asia Pacific Research Director Tim Lawless.

Mr Lawless said over the four weeks ending August 13, the number of new listings added to the Australian housing market was 3.3% above the previous five-year average; the first time we have seen the flow of new listings rise above the five-year benchmark since September last year.

The counter seasonal lift in vendor activity could probably be attributed to the positive turn in housing values across most regions since March alongside historically low advertised supply levels working to boost vendor confidence.

Anecdotally, we may also be seeing more home owners needing to sell amid a peak in the ‘fixed rate cliff’, elevated interest rates and high cost of living pressures, Mr Lawless said.

Data on mortgage arrears continues to show a historically small portion of borrowers are behind on their mortgage repayments, however we are likely to see mortgage stress becoming more evident through the second half of the year.

Most of the broad regions of Australia were recording a rise in the number of fresh listings coming to market, but the lift was generally from a low base and driven by the capital cities.

Compared to the same period a year ago, new listings were up 1.5% across the combined capitals but down 11.7% across the combined regional markets.

Focusing on the capitals, the only cities to record a higher number of new listings relative to a year ago were Sydney (+10.9%), Melbourne (+9.7%) and the ACT (+2.4%).

Each of these cities was now recording a new listing trend that was above the previous five-year average as well.

The remaining capitals were all recording a rise in the number of new listings through winter, but not enough to push fresh stock levels higher than a year ago or above the previous five-year benchmark.

Mr Lawless said cities where advertised supply levels had risen had also seen a reduction in the pace of value growth.

Sydney home values were rising at the monthly rate of 1.8% in May, halving to 0.9% by the end of July and slowing further in August based on changes in CoreLogic’s daily index.

Melbourne’s pace of value growth has eased from 0.9% in May to 0.3% in July and home values edged 0.1% lower across the ACT in July.

Cities with tight supply levels have seen accelerated value growth, with CoreLogic’s daily index showing a 1.2% rise in Perth values over the past four weeks, a 1.4% lift in Brisbane values and a 1.5% rise across Adelaide.

Based on activity from industry participants on CoreLogic’s RP Data platform, the real estate sector is becoming more active.

Since the first week of July, the number of pre-listing reports generated by real estate agents has been tracking higher than a year ago and well above pre-COIVD levels (based on activity at the same time of the year in 2019).

Nationally, over the week ending August 13, agent activity was 14.8% higher than at the same time last year, 10.0% higher than in 2021 and 31% above levels in 2019.

Activity from real estate agents was 7.5% higher over the past four weeks in WA, 5.7% higher across SA and up 5.4% in Queensland.

Tasmania, where stock levels are already elevated, has also seen a substantial rise in real estate agent activity over the past four weeks, lifting 6.1%.

Mr Lawless said the two most populous states, NSW and Victoria, where listings have been higher relative to the five-year average, had seen a smaller rise, probably reflecting an earlier rise in activity, as seen in the sharper lift in new listings since early July.

The trend in listings will be a critical factor to monitor over the coming months, he said.

The spring season is shaping up to be a busy one, making up for the relatively sedate spring and early summer selling season last year.

Through the recent recovery phase to-date, low available supply levels have been the key factor supporting value growth.

Mr Lawless said a rise in stock levels could signal a further easing in the pace of capital gains across Australian housing markets as buyers benefit from a broader selection of available housing.