Residential listings reach the peak

RESIDENTIAL property listings have peaked, rising marginally by 0.4% in October, according to SQM Research.

Residential property listings totalled of 383,217, which is a 14.5% increase when compared to the corresponding period last year.

Managing director Louis Christopher said this is a relatively modest yearly increase in comparison to other months which can be attributed to the fact that it was approximately this time last year that stock began to rapidly accelerate.

“This might actually be the peak in stock levels for this cycle. I note that Perth is now recording falling listings and Brisbane is now recording signs of stock numbers peaking.

“I suspect Sydney may final record a peak this month as well. However the Melbourne results are deeply concerning, particularly in light of the fact that we know there is still much dwelling construction yet to be completed. Hobart has also recorded a sharper rise than expected this month. That seems to be consistent with some of the house price falls recorded in the September quarter for that city,” he added.

There has been a mix of both monthly increases and declines within the capital cities, with Hobart recording the highest increase of 20% and Brisbane recording the largest decline (-3.4%).

Brisbane had 30,249 properties listed whilst Hobart had 4,316.

Melbourne still has the most stock on market, with 51,265 homes for sale – which is ahead of the nearest city, Sydney with 35,682 homes.

The only capital city to record a yearly decline in listings was Perth, falling by 3.1% since October 2010 and coming to a total of 20,000.

“Without any significant decreases, it is evident that the property market has entered into full spring mode during the last month.

“If the current amount of properties for sale continues to hover around these recent high figures, it is fair to say that we may continue to see declines in house prices in certain capital cities, in the near future,” Christopher predicted.

Australian Property Journal