Australian residential property listings slipped by 18% on year in October, with further interest rate hikes expected to put more pressure on sale ad volumes, an ASX-lister property advertiser said.
According to REA Group, property prices and volumes had fallen following rapid interest rate hikes, including the latest Reserve Bank increase last week which took the country's cash rate to 2.85% from 0.1% at the start of May.
REA warned that "further rate rises may see this continue, however, it is also clear the market is supported by positive fundamentals including record-low unemployment, high household savings, and increasing international migration," Dow Jones reported.
Australia’s largest cities – Sydney and Melbourne, in particular – saw significant declines in October volumes, with Sydney listings down 31% on year, while Melbourne listings were down 29%.
The size of the decline reflected a rush of listings in the prior corresponding period after COVID-related restrictions eased, REA Group said.
It added that growth rates for the remainder of fiscal 2023 will continue to reflect strong prior-period listings volumes, Dow Jones reported.
