House prices have been falling this year and continue to do so. This is the assessment of SQM Research managing director Louis Christopher.
Commenting on the latest stock level statistics from SQM, which show a monthly decline in stock levels in each of our capital cities, Christopher warned investors that they shouldn’t yet take this as a sign that the property market is staging a capital growth comeback.
Source: SQM Research
"It is becoming more evident that the number of real estate listings has reached its peak. Indeed, for a number of cities now, stock levels are trending down. Those cities include Perth, Brisbane, Darwin and possibly Sydney, though we note Sydney stock levels have been volatile of late,” said Christopher.
"Now while stock levels may be peaking, that doesn't mean prices have suddenly stopped falling. As the ABS data illustrates, house prices were falling in the March quarter and we think they are still falling as we speak. I'd like to see a sustained decline in stock levels before calling a real bottom in prices.”
Finishing on a more optimistic tone, however, he added that overall “the worst now is likely behind us with this current downturn, especially taking into account this week's rate cuts."
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