SQM Research has released its Stock on Market Report for April, which shows that total property listings rose by 2.4% over the month but were down 10.3% year-on-year:
The monthly rise in listings was broad-based, with all markets other than Hobart recording increases.
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However, both new listings and old listing fell in April.
New listings, defined as those less than 30 days old, fell by 2.8% in April, but were up a hefty 57.5% year-on-year:
Old listings, defined as those over 180 days old, also fell by 1.3% in April and by 33.4% year-on-year:
According to SQM, vendors are becoming more aggressive, both increasing listings and raising their asking prices:
Property owners have clearly responded to all the talk about a property boom and have aggressively lifted asking house prices over April, particularly in Sydney. We have also seen a strong rise in Sydney’s new property listings for the month, in part driven by having five weekends, but also because property owners are keen to take advantage of the buoyant conditions. Old listings continued to fall and that suggests that sales rates were still quite strong for the month despite the lift in prices and the Easter and school holiday periods causing some people to delay their property search.
Curiously, CoreLogic’s data showed the complete opposite, with new listings rising in April but old listings falling:
As noted by CoreLogic’s Tim Lawless:
“More home owners are taking advantage of strong selling conditions while they remain skewed towards vendors rather than buyers. Total advertised stock levels were 25% below the five year average in late April. Such low total listing numbers, at a time when new listings are above average, reflects the strength of buyer demand, fueling the current rapid rate of absorption”.
Regardless, both datasets show a tight property market where buyer demand is still running well ahead of market supply.
Other things equal, this suggests that prices will continue to appreciate at a decent clip – a view supported by the booming mortgage and auction markets.
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