We are now at that period when large amount of fixed loans were expected to roll off their initial fixed them. Housing indicators are currently shedding light on certain vulnerabilities, diverging from the recovery trajectory witnessed in the initial half of the year. The pace of expansion in the home price index has moderated, transitioning from a 1.1% upswing in June to a more modest 0.6% uptick in July. Similarly, the clearance rate observed until the culmination of July has displayed a marginal regression, averaging at 66.5% down almost 8% from the previous month.
A point of particular interest lies in the surge of new property listings, which encountered a 2.8% increase, equivalent to approximately 912 additional listings, throughout the course of July. This phenomenon deviates from historical norms, as conventional patterns typically point to a reduction in new listings during July, attributable to the customary winter lull. Over the past five years, new listings have consistently experienced a decline of -3.6% from June to July. This trend is especially marked in urban centers such as Sydney, where new listings have surged by 7.6% over the month, and in Melbourne, registering an even more substantial rise of 8.6%.
This noteworthy surge in new listings could be attributed in part to heightened motivation among homeowners to sell, possibly in response to challenges linked to managing escalating mortgage payments. Additionally, it could signify homeowners taking proactive steps to sell their properties, anticipating forthcoming challenges tied to mortgage sustainability. This possibility gains prominence considering the significant number of fixed-term mortgage arrangements set to conclude towards the latter part of this year.