CoreLogic’s Cameron Kusher has penned another interesting blog post examining ‘shrinkflation’ – the unusual phenomenon whereby transaction volumes are falling at the same time as dwelling values are rising – with the bubble epicentres of Sydney and Melbourne leading the way:
Despite a surging population and record high levels of new construction, a lower proportion of housing stock is selling.
Over the 12 months to September 2017, just 5.0% of the national housing stock transacted. This was the lowest proportion of stock-turnover since April 2012 when it was at an historic low of 4.9% of stock transacted…
Across the combined capital cities, a record-low 4.7% of housing stock transacted over the past year which was well down on the 5.6% average. Across the combined regional markets, 5.6% of housing stock transacted which was slightly higher than the 5.5% average. In both the capital city and regional housing markets stock turn-over is slowing…
The full text of this article is available to MacroBusiness subscribers
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
