There is currently a 5.3-month housing supply available for sale across the combined capital cities— marking the highest months of supply figure recorded any time since 2012. Last year at the same time, there were only 3.9 months of supply.
The months of supply metric measures the volume of stock advertised for sale against the run rate of settled sales. The result, expressed in months, indicates how long it would take the market to absorb all the residential properties that are advertised for sale.
“If no more properties were advertised for sale, it would take 5.3 months for current advertised supply to be purchased,” CoreLogic said.
The rise in months of supply is a function of a rise in the amount of stock available for sale and the ongoing drop in transaction volumes.
Results by city
Sydney has posted 4.1 months of housing stock available for sale. When compared to the previous seven years, the result may seem like quite a low supply of stock for sale. However, according to CoreLogic, the months of supply figure is now the highest it has been at this time of year any time over that period. Months of supply increased due to much lower transaction volumes and an elevated volume of stock for sale.
In Melbourne, there is currently a 5.9-month housing supply for sale. The number has fallen slightly over recent weeks, but it is still currently higher than over the same period during any of the previous seven years. The heightened supply in Victoria’s capital reflects a much slower rate of sale and much higher stock for sale.
Brisbane, meanwhile, currently has 5.9 months of housing supply for sale, making it the highest figure logged for this time of year since 2012. The elevated volume of stock for sale, as well as declining transaction volumes, is driving the heightened supply. Although the stock is elevated relative to recent years, it has been fairly steady at 5.9 months over recent weeks.
Adelaide has recorded 3.8 months of supply on the market— and although that figure is lower than most other capital cities, it is slightly higher than at the same time last year (3.7 months). Transaction volumes in the city are steady if not slightly higher than a year ago. However, the volume of stock for sale significantly climbed.
Peth currently has 7.7 months of supply, —the highest it has been at this time of year since 2012. The months of supply figure is also one of the highest amongst all capital cities. “The ongoing weak housing conditions in Perth, whereby values and transaction volumes continue to fall and stock for sale mounts, has led to further increases in months of supply,” CoreLogic said.
In Hobart, there is only a total of 2.8-month supply on the market. The volume of stock for sale in the city has recently jumped. However, it remains quite low. Although the month of supply figure is low, it is higher than at the same time last year (two months) and 2017 (2.7 months).
At nine months, the result for Darwin is higher than any other capital city. Despite the high figure, it is lower than it was at the same time in the past three years.
Canberra currently has 3.6 months of housing supply advertised for sale. While that is a comparatively low figure, months of supply in Canberra has not been as high as it currently is since 2013.
“The months of supply figure highlights why the housing market is generally falling. Credit conditions are tight which means fewer buyers and generally leads to a slower rate of sales. Although vendors have responded by bringing fewer new properties to the market, total stock for sale remains elevated, leading to heightened months of supply figure,” CoreLogic said.