Property Listings Plummet 22pc

House prices increased 8.9 per cent over the past year while listings have dropped 21.8 per cent as the Australian property market reacts to Covid-19.

There were 16,444 properties placed on the market compared to 21,015 over the same 28 day period last year, according to Corelogic.

Auctions were also down to 431 last week compared to 1,922 the week before, which was expected as people commemorated Anzac Day.

Meanwhile Domain reported Australian house prices increased 8.9 per cent and units were up 7.4 per cent over the first quarter of 2020 compared to the same period last year.

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Australian capital city listings during Covid-19

^{*Advertised for sale in 28 days ending 19 April. Source: Corelogic}

Compared to the first quarter of 2019 Sydney houses were up 13.1 per cent and units were 8.5 per cent; in Melbourne houses were up 12.6 per cent and units were 13.8 per cent; while Brisbane recorded a 2.1 per cent growth in houses and -4.6 per cent for units.

The quarterly results for houses was also up compared to the end of 2019 across the country which units provided a mixed bag for vendors across the country ranging from a 4.2 per cent improvement in Adelaide to a 8.1 per cent decrease in median unit prices for Darwin.

This compares to December quarter of 2019 where dwellings rose 4 per cent in value.

Domain senior research analyst Nicola Powell said the coronavirus pandemic and economic shutdown altered the market mid-March.

“New listings began to fall suggesting vendors were becoming hesitant, this caution heightened in April with even fewer homes listed for sale, suggesting few forced sales,” Powell said.

“The slowdown aligns to the shutdown of non-essential services, the temporary ban on onsite auction gatherings and open inspections.

“Despite homes selling quicker than last year, sellers are adjusting expectations, and auction prices have slipped.”

Related: The Relative Resilience of Property Values

House prices March quarter

^{Source: Domain House Price Report}

According to the Domain report in Sydney the rate of price growth peaked before the coronavirus.

“Houses regained the majority of the $165,000 lost during the downturn, with only $29,000 left to recoup, while units have recovered almost $61,000 of the $103,000 lost,” Powell said.

In Melbourne house and unit prices remained at record highs, rising over four consecutive quarters however this could be short-lived.

“The uncertainty forced vendors to drop asking prices, one in ten listings had a price revision down in the first three months of 2020, compared to only 3 per cent in the final quarter of 2019,” Powell said.

Powell said house prices in Brisbane nudged upwards while unit prices recorded the steepest annual fall in almost two decades.

“An unprecedented number of developments built over 2015-16 have been at the core of Brisbane’s unit price falls,” Powell said.

“Values have been declining for almost three years in annual terms, with buyers now able to purchase at 2013 prices.”