Stock Levels Plunge Even Further - SQM Research

Figures released by SQM Research reveal that the level of residential property listings around the nation plunged even further during the month of July, with national stock levels decreasing by -2.1% and coming to a total of 351,487.

Year on year, the country also witnessed another decline in stock, falling by –2.5% nationally, with every capital city besides Canberra and Melbourne recording yearly decreases.

These decreases potentially point to a pick-up in the Australian housing market, although with over 350,000 online residential listings still being recorded, SQM Research still believes the level of stock to be elevated when analysing the data at a national level. However when broken, each capital city appears to be telling a different story. 

Adelaide, Hobart and Perth all experienced substantial monthly declines of over -4%, whilst the only capital city to record a rise during July was Darwin, increasing by a mere 0.9% - 12 listings.

Melbourne experienced no change during the month of July, still possessing the highest amount of online residential sales listings of all the capital cities and one of the only capital cities recording an increase in stock levels since the corresponding period last year (July 2012) – climbing by 2.8%.

Sydney is still showing signs of significant stock absorption, with not only a -2.1% decrease in stock levels month on month, but a substantial -17.0% decrease since July 2012. It is becoming more and more evident that the housing market is beginning to pick up in this capital city and SQM Research believes that this will continue into the Spring selling season.

Louis Christopher, Managing Director of SQM Research says, “Nationally, listings are still elevated. However, there is now a large contrast between the readings of certain cities. Take Melbourne as an example - Despite apparent high clearance rates at auction, there is still too many listings on the market, creating headwinds for a Melbourne housing recovery.

“In contrast, Sydney is clearly experiencing a shortage of listings in the market, which is putting upward pressure on real estate prices. This is particularly the case in the inner ring where listings have fallen by approximately 25% over the past 12 months.”