A surge in for-sale listings tipped to dampen home price growth | Kanebridge News
Share Button

A surge in for-sale listings tipped to dampen home price growth

The forecast slowdown comes on the back of sharp increases in home values

By Shannon Molloy
Wed, Aug 30, 2023 10:10amGrey Clock 3 min

The number of new for-sale listings has been stubbornly sluggish for much of the year, but there are growing signs would-be vendors are finally feeling confident to go to market.

New analysis indicates this surge in supply is likely to put the brakes on a renewed boom in property prices being seen across much of the country.

According to data from research firm CoreLogic, national home values rose 2.9 percent in the three months to July – the highest quarterly movement since January.

Across the capital cities, values were up 0.8 percent last month – down slightly from a 1.2 percent lift seen in June.

Prices are rising fastest in Sydney, with a whopping 4.5 percent jump in the three months to July.

Prices rose 4.2 percent in Brisbane in the quarter, while Adelaide and Perth each recorded a 3.2 per cent increase. Values in Melbourne were up two per cent.

“Home values are down 3.4 percent annually, but declines are quickly subsiding from an eight per cent drop in the year to March,” Eliza Owen, head of residential research at CoreLogic, observed.

Data shows the number of new listings nationally hit 33,616 in the four weeks to 30 July, trending slightly higher through the month, which she noted is unusual for this time of year.

“The flow of new listings added to the market has been rising since mid-June, in contrast to the usual seasonal trend where new vendor activity would be trending lower through the colder months.”

With more homes hitting the market ahead of the traditionally busy spring selling season, Paul Ryan, economist at data house PropTrack, said price growth could dampen in the months ahead.

“There have been some tentative signs that sellers are responding to continued strong buyer demand and higher prices by bringing more listings to market,” Mr Ryan said.

PropTrack modelling shows a low level of new listings could be responsible for as much as a quarter of the price growth seen this year, and the impact of low supply can be felt within a few months.

“This analysis suggests that a stronger flow of listings could weigh on home price growth later this year as the market gears up for the spring selling season,” Mr Ryan said.

“And importantly, it shows the impact on prices is likely to be felt quite quickly after any new listings are brought to market – within one to two months.”

Mr Ryan said property markets have “displayed a remarkable turnaround in 2023”.

“Home prices fell persistently over 2022, down 4.1 percent from April to December, during the sharpest episode of interest rate increases ever implemented by the Reserve Bank,” he said.

“But 2023 has seen national home prices increase each month, up 2.8 percent so far this year, despite continued increases in interest rates.”

One major factor for the rapid turnaround in price movements is the low supply of new listings hitting the market, he said. Buyer demand has remained strong.

“The flow of new listings over the first half of 2023 was around 15 percent below the level seen over the same period in 2022, which represents a significant decrease.

“By contrast, the total number of homes on the market has mostly drifted upward as homes take longer to sell compared to the strong market conditions in 2021.”



MOST POPULAR

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

Related Stories
Property
Tonino Lamborghini Unveils New Luxury Residences in Ras Al Khaimah
Property
AACCI’s Strategic Vision for Enhancing Australia-Arab Trade Relations
Property
DAMAC Launches Phase Two of LAGOON Views in Dubai
Tonino Lamborghini Unveils New Luxury Residences in Ras Al Khaimah

Tonino Lamborghini recently revealed a new luxury project comprising 241 units in Ras Al Khaimah, developed in partnership with Arista Developments.

Tue, May 21, 2024 2 min

Named the Tonino Lamborghini Residences, this project promises a fresh take on luxury living with its iconic design, cutting-edge amenities, and stunning sea views.

Set on Al Marjan Island, the development is adding 241 high-end units to the area’s real estate offerings, all reflecting the sleek, Italian elegance associated with the Lamborghini name.

These residences are designed to impress, featuring modern architecture that harmonizes with the scenic surroundings and interiors marked by meticulous craftsmanship and top-quality finishes.

Living in this one of the project’s units means access to a range of upscale amenities: a state-of-the-art fitness center, multiple swimming pools, beautifully landscaped gardens, and dedicated areas for children’s play. The complex also offers a business center with a conference room, an outdoor BBQ area, and a chic café, catering to all aspects of high-end living.

Arch. Abdulla Al Abdouli, Chief Executive Officer, Marjan, expressed excitement about the introduction of Tonino Lamborghini Residences to Al Marjan Island, noting the project’s blend of sustainable construction and smart home technologies. This integration, he mentioned, guarantees a luxurious lifestyle equipped with the finest modern amenities, reflecting the exquisite Italian craftsmanship. He is confident that this new venture with Arista Developments will significantly boost the allure of Al Marjan Island as a top lifestyle destination in Ras Al Khaimah for both investors and residents.

Tonino Lamborghini, President of the Tonino Lamborghini brand, said: “We are delighted to be among the pioneers in this remarkable new destination in one of the seven emirates of the UAE. Our heartfelt gratitude and recognition go to H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, for his visionary leadership and foresight, and for embracing innovative strategies to revitalize a region full of potential.”

Mr. Arthur Chu, Chairman of Arista Developments, highlighted the project’s ambition to capture the essence of the Tonino Lamborghini brand in every aspect of its design. He described the development of a prestigious residential tower on Al Marjan Island that will reflect the lifestyle and beauty synonymous with Lamborghini. From the sharp, well-defined lines of the exterior to the elegantly designed interior common areas, every detail is crafted to showcase the brand’s distinctive elegance and sophistication. Chu emphasized that the interior designs, personally crafted by Tonino Lamborghini, aim to fully immerse residents in the Italian brand’s luxurious identity.

The variety in housing options is vast, ranging from one and two-bedroom apartments to duplexes, sea view villas, signature villas, and exclusive penthouses.

The collaboration between Tonino Lamborghini and Arista Developments blends iconic Italian style with expert real estate craftsmanship. This venture marks Lamborghini’s first introduction to Ras Al Khaimah and represents a commitment to setting new standards in luxury and modern living.

 

MOST POPULAR

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

0
    Your Cart
    Your cart is emptyReturn to Shop