Listings numbers in Melbourne increase as buyers continue to hold the upper hand

More Melbourne home owners are putting their property up for sale than they were 12 months ago, but the switch to a buyers’ market means many are staying on the market for longer.

Despite a somewhat deflated spring selling season, the number of homes listed for sale has increased over spring, up 22 per cent on this time last year.

New listings coming onto the market are in line with last year, with very little deviation. Generally, the number of listings fluctuates over the spring selling period, but this year it’s trended consistently upward.

Total listings continue to trend upward while new listings remain level with last year

The number of listings began to accumulate mid-year, Domain economist Trent Wiltshire said.

“This time last year the number of listings was declining slowly. Things were still selling and clearance rates were 60 to 70 per cent,” he said.

It was yet another indicator buyers had more power than they had this time last year, Mr Wiltshire said. “Sellers are reluctant to reduce their prices, and buyers are realising they have the upper hand and are willing to wait for a good deal.

“It means that things are taking longer to sell, or not selling at all … the listings keep building up on top of each other so that stock sitting there is increasing.”

Mr Wiltshire said it was no surprise given the city’s low clearance rates. Excluding January, clearance rates have not been this low since 2004, and October’s monthly rate was 48.1 per cent.

The amount of new listings typically slows into November and December, so Mr Wiltshire said it would be interesting to see if the languishing stock was absorbed over summer.

Allen Wargent buying advisors’ Pete Wargent said the accumulation of listings was a clear sign of a weakening market.

Listings volume in October

“It’s a good indication of softening conditions, because things are taking longer to sell now,” he said. “Melbourne’s come from a relatively balanced market to about a 24 per cent lift from last year, so that’s a weak result.

“Highly sought-after stuff has had some good prices but that’s the exception rather than the norm.”

Some of the most affected areas of Melbourne were the outer east and south-east, where the number of listings were up more than 30 per cent year-on-year.

Within those pockets, there were suburbs that performed particularly well, despite market sentiment affecting buyer enthusiasm.

Troy de Vries and his wife Stephanie sold their Upper Ferntree Gully home this week, for a price well above expectations.

Troy and Stephanie de Vries have had their property snapped up in a number of days. Photo: Luis Enrique Ascui

The home was listed for a total of nine days before going under offer. It had 70 groups through in its first and only weekend of inspections.

Mr de Vries is aware his experience isn’t typical; he credited the quality of his home and its location with the success.

“There’s a bit more supply than there has been [in Upper Ferntree Gully] but the dollar value seems to be holding very firmly,” he said.

The home sold for above their expectations, thanks to a good location and unique appeal. Photo: Fletchers

Selling agent Frank Kouzi said a good relationship with buyers and an eye for detail was now key.

“It only works in certain areas, where everyone’s doing auctions. Otherwise it’s hard to hold onto a buyer for four weeks in this kind of market.”