SQM Research has released its Stock on Market data for May which revealed a hefty 6.3% decline in for sale listings over the month to be down 19.2% year-on-year:
Listings fell across all capital city markets other than Darwin.
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The decline has been driven by old listings, which fell 9.2% in May to be down 44.0% over the year:
By comparison, new property listings only fell by 2.4% in May, but were 54.1% higher year-on-year:
According to SQM Research Managing Director, Louis Christopher:
“Property listings fell in May due to strong market conditions. We have also seen a big fall in old listings during the month, indicating that old stock is getting moved everywhere. The downward trend in old listings suggests strong absorption rates, so new property listings are not completely offsetting the falls in old listings, indicating there are more buyers than sellers in the market, which is fuelling the property boom.
“This is contributing to strong growth in asking prices… With low interest rates set to remain over 2021, and many households awash with cash as the jobless rate continues to fall, we expect to see sustained gains in house prices over the remainder of the year.”
Separate data released yesterday from CoreLogic showed a similar trend, with total listings shrinking despite a pick-up in new listings:
Overall, this data paints a picture of voracious buyer demand swamping rising supply. This is very bullish for property prices through 2021.