Rumblings about the potential for oversupply of housing stock in some markets are likely to continue – and should be noted by sensible investors.
However, the latest release of data from one industry analyst indicates that there is no sign of significant market acceleration in listings.
According to SQM Research’s Stock on Market
report for August 2014, national stock levels were, in fact, staying steady year-on-year.
The report shows that the number of residential property listings increased during August, after a substantial dip during July.
With 347,646 unsold properties on the market in August, there was a 3.8% increase month-on-month and a -2.1% decrease year-on-year.
The approach of the spring selling season means that the August increase was probably due to seasonal factors.
SQM Research managing director Louis Christopher said it was the narrowing difference in the yearly decrease of stock on market which was of particular interest.
This time last year - just prior to the current east coast led boom - there was a large drop in stock levels year-on-year, but that hasn’t been the case this year.
Christopher said that, with the amount of stock steadying year-on-year, there was no further acceleration in market momentum beyond what was already in existence.
“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.”
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