New home listings are selling faster, particularly in capital cities, as increasing buyer confidence and a shortage of new listings drive down the time properties spend on the market, new PropTrack analysis showed.
“The speed at which listings are sold fluctuates over time, decreasing when market conditions are strong and increasing when the market is in a slump," said Karen Dellow (pictured above), senior data analyst at REA Group.
Before the pandemic, most new listings sold in 60 days or more. However, by the end of 2020, high property demand led to more new listings being sold within 60 days than those above 60 days. This trend reversed during 2022 due to interest rate rises dampening buyer demand.
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Now, with stronger buyer sentiment and a continued shortage of new listings, properties are being snapped up faster.
“New listings in metro areas are being snapped up the fastest,” Dellow said, with metro listings averaging 58% sold within 60 days in 2023, compared to 38% for regional listings.
Adelaide is currently the hottest market, with 66% of new listings sold within 60 days in December 2023, a 37% increase from December 2022. Perth and Brisbane also saw significant increases, both growing by 37% over the same period.
Despite the quick turnover of new listings, more than 60% of total listings online each month have been onsite for 90 days or more.
“If a property doesn't sell within 60 days of being listed, the probability of selling after 60 days decreases significantly,” Dellow said.
For sellers, the fast sale of properties is comforting, particularly in capital cities.
“But the data shows how important it is to sell a property within 60 days otherwise the chance of selling diminishes over time,” Dellow said.
To read the PropTrack analysis in full, click here.
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