The latest SQM Research figures show national residential listings fell by 3.8 per cent in April, totalling 325,147, while asking prices for property dropped over the month.
In Sydney, listings fell by 4.4 per cent from March, but were up 34.9 per cent from a year earlier with some homeowners seeking to take profits on their homes before any sustained drop in house prices.
Melbourne listings fell by 3.7 per cent, but were up 6.4 per cent from a year earlier, indicating a reversal in the previous shortage of properties for sale.
The data also indicated listings fell in Hobart by 8.4 per cent in April, and dropped by 26.8 per cent from a year earlier, suggesting a continuing shortage of properties for sale.
This forced asking property prices to spike over the year to 1 May.
SQM Research managing director Louis Christopher said: “Homeowners in Sydney are taking advantage of capital gains over recent times to list their properties for sale. We have also seen more stock in Melbourne compared to a year ago as some homeowners there seek to take profits too.
“However, in Hobart, homebuyers are facing higher prices given an ongoing shortage of properties for sale.”
Meanwhile, capital city asking prices fell 0.8 per cent for houses and 0.2 per cent for units for the month to 1 May.
In Sydney, asking prices for houses fell 1.1 per cent while asking prices for units dropped 0.6 per cent. Using a 12-month timeline, asking prices for houses were down by 1 per cent, with the average price now being $1.36 million as the property market wanes in Sydney.
Conversely, Melbourne asking prices for houses were up 0.5 per cent over the month and 18.8 per cent on a yearly basis.