Stock Levels Remain Steady Year-on-Year
By Louis Christopher on 4 Sep 2014
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The property market isn’t expected to boom any further this year
Photo: H Jalmar Gerbig
The number of Australian residential property listings increased during August, perking up after a substantial dip in listings during July.
Nationally, the number of unsold properties on the market has been recorded at 347,646 for August 2014 – a 3.8 per cent increase month-on-month and -2.1 per cent decrease year-on-year.
Of particular growing importance is the narrowing difference in the yearly decrease of stock on market, where an ongoing trend has now become evident.
Stock Levels Set To Stabilise
Indeed, we are not seeing the large drop in stock levels year-on-year as we were at approximately this time last year, when the market (east coast predominantly) initially began to boom.
“It is clear for all to see that the market remains strong on the east coast of Australia…”
With the amount of stock steadying year-on-year, we believe there is no further acceleration in market momentum beyond what is already in existence.
However, it should be noted that August’s monthly rise in listings for sale is most likely due to seasonality, with the spring selling season approaching.
Capital Cities Recording Mixed Results
Further to this, SQM Research’s Asking Prices Index has revealed the only capital city to record monthly increases in vendor sentiment on both houses and units was Melbourne, with the remainder of the capital cities recording mixed results.
While our competitors wish to grab headlines by stating that the market is falling and will slow one month, and that we are witnessing the strongest growth since 2007 the next, we have been very consistent and accurate in our market observations.
It is clear for all to see that the market remains strong on the east coast of Australia; however, the mining exposed cities are by and large having a downturn that will likely persist for some time yet.
