Sellers are feeling more confident about asking prices, as listings remain low, leading to more competition for properties.

New figures from SQM Research show that in May, asking prices increased by 2.1%, the second consecutive monthly rise.

SQM managing director Louis Christopher says at the same time residential property listings were down by 0.3% on the previous month.

“Overall, listings activity for the month of May was a positive for vendors with evidence of higher absorption rates and slightly less competition from other property sellers,” he says.

The biggest drop in listings during the month was in Perth, which was down 3.2%, followed by Brisbane -1%, Hobart -0.7%, Melbourne -0.6% and Adelaide -0.5%.

Listings rose 3.6% in Darwin, 3% in Canberra and 0.4% in Sydney.

Christopher is predicting further drops in listings in June.

“Typically, new listings fall between 10% to 20% over the month of June due to the seasonal winter conditions,” he says.