National housing markets are cooling rapidly as lockdown restrictions and wavering confidence sideline buyers and sellers in most capitals.
My Housing Market reports that the number of homes newly listed for sale nationally has crashed over the past week as concerns over a protracted shutdown have potential sellers increasingly taking a wait-and-see approach to the state of locally-impacted housing markets – and economies.
The number of homes newly listed for sale nationally over the past week has fallen by 20.6% compared to the previous week and is now at the lowest level since the holiday period of early January.
New listings are now remarkably tracking at lower levels compared to the same period last year – down by 2.5%
All capitals reported declines in the number of newly listed homes over the week ending July 25th compared to the previous week, with Melbourne and Adelaide clearly the underperformers down by 73.6% and 49.4% respectively.
Brisbane reported the highest number of newly listed homes over the week ending July 25th, just ahead of Sydney and now significantly higher than Melbourne.
National housing markets are now confronting the impact of covid lockdowns, with recent boom- time energy dissipating as restrictions impact both buyers and sellers.
Fewer transactions will likely put downward pressure on home prices as experienced in previous lockdown periods.
The level of disruption to housing markets however will depend on the nature of local restrictions with markets generally set to rebound quickly as lockdowns are eased and confidence is re-generated.