Distressed property listings totalled 6,658 in October, up from 6,299 distressed listings recorded in September, yet asking prices lifted 0.6% nationally and 1.1% in the capital cities, SQM Research data revealed.
The monthly change in distressed listings was most dramatic in the ACT and NT, where the figures jumped 12.5% and 13.5%, respectively.
In terms of gross numbers, Queensland ranked first with 2,791 distressed listings, an increase of 7.5%, while New South Wales had 1,265, up 7.8%.
“We note the new rise in distressed sales activity, which may indicate the rising interest rate environment is starting to bite,” said Louis Christopher, SQM managing director. “Overall, it was a disappointing month for sellers and their respective agents in the capital cities.”
The SQM research also found a “modest” 1.6% rise in new listings (less than 30 days) across the capital cities over the month, with 74,652 new properties added onto the market. Listings older than 180 days, meanwhile, dropped 0.9% to over 54,749 dwellings.
“This is abnormal given October is a month where the annual spring selling season reaches a peak in activity,” Christopher said. “Older listings fell for the month, driven by higher absorption rates in regional Australia.”
All cities posted an increase in the number of older listings month-on-month except for Adelaide which saw old listings decline by 7%.
Hobart saw the biggest rise in older listings over the month with a 16.1% increase, followed by Sydney with 5.9%.
Despite the slow turnover, national combined dwelling asking prices lifted 0.6% and 1.1% for capital cities over the month.
During October, the capital city average asking price for houses was $1.21 million and $608,270 for units.
“Sellers would be wise to meet the market in this environment if they want to sell," Christopher said. “I note our asking prices index was actually up a little, which is only going to hurt sellers in this current downturn.”