New home listings are getting snapped up at greater speeds, especially in the capital cities, as increasing buyer confidence and a shortage of new listings drives down the time spent on market.
The speed in which listings are sold fluctuates over time, decreasing when market conditions are strong and increasing when the market is in a slump.
Most new listings were selling in 60 days or more until the pandemic hit and then the tables turned. By the end of 2020, demand for properties was so high that more new listings were sold within 60 days than those above 60 days.
During 2022, when interest rate rises were dampening buyer demand the number of listings onsite for more than 60 days took over again.
However, now that buyer sentiment is stronger, and new listings are still in short supply, properties are being snapped up at a greater speed.
And, new listings in metro areas are being snapped up the fastest, with 50% more metro listings onsite for two months or less compared to regional areas.
In 2023, regional listings onsite for 60 days or less hovered around 38%; however, metro listings have continued to increase since January 2023 and were sitting at an average of 58% last year.
The metro markets are currently in high demand and all cities except for Canberra and Hobart have seen a year-on-year increase in new listings that have been on the market for 60 days or less.
Adelaide is currently the hottest market in the country, with 66% of new listings on the market for 60 days or less in December 2023, a 37% increase on December 2022.
Perth and Brisbane also experienced the largest increase in the proportion of listings with a shorter number of days on site, both also growing by 37% over the 12-month period.
The fact that most listings are only on the buy website for 60 days or less is comforting news for property sellers.
However, if we look at all the listings that have been onsite within a month rather than just the new listings, we see a different story.
More than 60% of total listings online in each month have been onsite for 90 days or more, however what we don't know from this data is when these properties sold.
It is fair to assume that most of these properties sold and were removed from the site; however, there appears to be a buildup of listings that have been onsite for 90 days or more.
Looking at the preliminary sales data, it is easier to gauge when and whether these properties sold.
Most new listing sales happen within 60 days and currently only one in five sells in greater than 60 days.
Comparing this chart to the previous total listings chart it now becomes clear that if a property doesn't sell within 60 days of being listed the probability of selling after 60 days decreases significantly.
Fortunately for sellers, properties are being snapped up at record speed, and in capital cities this time is even faster.
But, the data shows how important it is to sell a property within 60 days otherwise the chance of selling diminishes over time.
