SQM Research believes the recent Stock on Market data suggests the market might have achieved a state of equilibrium between buyers and sellers:
This result is actually more modest than what was expected by SQM Research, and reflects regular seasonality. With the past several months of Stock on Market levels following closely with seasonal expectations, SQM Research is of the opinion that the residential property market is now showing signs of shifting from a volatile market which has been dependant closely on interest rates and the country’s economic climate, over toward what is considered a market that is in the state of equilibrium between buyers and sellers…
Louis Christopher of SQM Research says “It is becoming clear now that these results of late have been more influenced by seasonality rather than cyclical factors. That suggests to me that the forces of demand verses supply in the national housing market are reasonably balanced right now. Of course, each city has its own story to tell. For example, Sydney is clearly in recovery mode, while I strongly believe Canberra is in a downturn”.
By way of comparison, RP Data’s listings figures for the week ended 28 April 2013 also showed an annual reduction in the number of homes for sale at the national capital city level, with falls recorded in all capitals except Melbourne:
