SQM Research found total property listings in Queensland were also up 11 per cent in Brisbane in July and 7 per cent nationally.

Distressed selling was up 6.4 per cent in Queensland in July, but was still down 25 per cent for the year.

SQM Research managing director Louis Christopher said he expected more distressed selling in the next few months, but stressed the increase was off a very low base.

“Most notably, listings between 31 days and 180 days rose by 14.1 per cent, indicating a surge in unsuccessful sales campaigns for the month and year to date,” the report said.

“SQM Research now anticipates a rapid rise in total listings for the remainder of 2022.”

New listings (less than 30 days) rose marginally in Brisbane in July but were down 7 per cent for the year. Older listings in Brisbane of more than 180 days were down 3 per cent for the month and 48 per cent for the year.

Christopher said sellers had been largely unsuccessful in July.

“There is a clear trend across all cities of rising listings which is being driven by lower buyer interest and is ultimately symptomatic of the national housing downturn,” he said.

“I think the Spring selling season is going to be a very tough one for property sellers and their respective agents. While asking prices have been adjusting downwards since February, there will be a need (for) further compromise if property vendors do want to sell this Spring.”

Asking prices in the capitals dropped 0.8 per cent. In Brisbane, asking prices were still up 30 per cent for the year for houses but had fallen 0.6 per cent on a rolling month average. Units were up 17 per cent for the year and up 2.2 per cent on the rolling month average.

The increase in listings follows four increases in the benchmark cash rate by the Reserve Bank and a survey from Digital Finance Analytics that mortgage stress was already at high levels nationally.

In a social media post today, Coolibah Capital economist Christopher said the top end of the market “is getting smashed a lot harder than less expensive sectors”.

“The most expensive 25 per cent of properties started declining in value much earlier than the rest of the market,” Joye said.

The falls in the top 25 per cent were largely in Sydney and Melbourne, but were also down in Brisbane.

Data from the Australian Bureau of Statistics also showed that housing lending fell 4.4 per cent in June, with declines across owner occupier lending (-3.3 per cent) and investor lending (-6.3 per cent).

Building approvals were down 0.7 per cent in June after a jump in May of +11.2 per cent.

ANZ said it expected rising interest rates and high inflation would push down demand for home building and borrowing in the coming months.

CoreLogic data showed that housing prices were 2 per cent below their April peak at end of July.