A continuing increase in the number of properties for sale is exposing the deteriorating state of the Australian property market.
New figures from SQM Research have revealed that the number of properties on the market increased again in March, up 3.8% to 356,603. This is a staggering increase of 47.6% compared to the same time last year.
SQM managing director Louis Christopher believes that the result is indicative of the slowing property market.
"This weeks stock level results reveal a market that continues to deteriorate in most capital cities and metropolitan regions. It fits with the weak housing finance approval numbers released last week by the Australian Bureau of Statistics, and flies in the face of what are increasingly questionable auction clearance rate statistics," he commented.
Christopher went on to say that he believes house price falls are likely to exceed 5% for the calendar year, with south-east Queensland, Perth and Darwin leading the falls.
The SQM figures also revealed that Melbourne recorded both the highest month-on-month and year-on-year increase in property listings at 9.6% and 60.9% respectively. Even the city with the smallest year-on-year growth in stock, Sydney, experienced an increase in listings of nearly a third.
The ABS's housing finance figures for February - a keenly-watched indicator of future market performance – showed the lowest level of home loan approvals in ten years, fuelling speculation that house prices could slide further than previously anticipated this year.
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