Buyers are surprisingly responsive to a rise in listings over May

COVID-19 has brought about downside risks for the economy and housing market. A 0.3% decline in March GDP confirmed a technical recession is underway in Australia, total wages paid fell 5.4% between mid-March and early May, and Australian dwelling market values saw the first month-on-month decline since June 2019.

But one surprising sign of stabilising emerged in May. Home sales have risen, with home owners testing the market, and new listings are rising.  In fact, buyer demand is…