CoreLogic Head of Research Tim Lawless recently reported that buyers are starting to take the lead in the market, with higher number of homes up for sale because of a hike in new listings.
Fresh listings being are up 16% relative to the end of winter. A closer look on the figures, though, showed that despite the upward trend in new listing, fresh stock additions are trailing nearly 4% lower than the same period in 2017, the category’s lowest seasonal level since 2012.
Lawless associated the drastic downward shift of new listing numbers with weak vendor confidence, a result of the weakening market and more difficult selling conditions.
Nevertheless, as mentioned earlier, total advertised listing numbers have been tracking upwards insofar as rate of absorption slows. Total listing numbers are 10.2% higher than the previous year and at their highest level for this time of the year since 2012.
It is projected that if the number continues to increase, the market will see the number of properties available for sale outdo the recent 2012 peak in total advertised stock levels.
Interestingly, it was pointed out that the hike in total listing numbers was not because vendors were panicking and eager to sell their properties. Rather, it was the less demand that drove the figures relisting’s higher, as well as caused longer selling times and fewer successful sales at auction.
How does this affect market behavior?
“More stock means more choice for buyers and harder selling condition for vendors – essentially a buyers’ market,” stated Lawless.
He also highlighted that buyers get the upper hand at times of sale.
“Buyers have little sense of urgency under these conditions; they can negotiate hard, take their time to make a purchase decision, and if they feel a property price doesn’t reflect fair value, they can easily move onto the next property option. “
Lawless advised vendors to offer reasonable prices and apply effective marketing campaign amid so much competing stock in the market.
