Yesterday’s dwelling approvals data by the Australian Bureau of Statistics confirmed that the construction boom that has gripped Melbourne over the past three years continues:
Now SQM Research has released their stock on market figures for the month of June, which reveals that the number of homes for sale in Melbourne has hit an all-time high, tracking at around double the levels of early-2008:
In my house price outlook report, available at Macro Investor (sign-up for a free trial here), I outline why the Melbourne housing market has, by far, the worst fundamentals out of Australia’s capital cities and forecast -5% to -8% price declines over the next 12-months. Chief among my concerns was the growing oversupply of homes for sale as well as the large pipeline of homes under construction.
Most other cities also trended higher but less alarmingly: