SQM Research has released its Stock on Market data for June, with total listings nationally down another 4.0% with all capitals but Darwin recording falls:
Over the year, listings fell 21.6% nationally, again with all capital city markets but Darwin recording falls.
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New listings (<30 days) nationally fell by 9.1% in June:
Whereas old listings (>180 days) fell 6.1% nationally in June:
Commenting on the results, SQM managing Director Louis Christopher noted that demand continues to outstrip supply, which will push prices higher in the period ahead:
“Notwithstanding the quieter winter season, property listings fell again in June following a drop in May. We have also seen a another large fall in old listings this month, indicating old stock is being sold and new property listings aren’t offsetting this fall. This highlights there are more buyers than sellers in national property markets, and it also suggests the market remains strong despite the new outbreak in Covid19 cases and the end of Job Keeper and Home Builder earlier this year.
“As demand outstrips supply, we are seeing strong rises in asking property prices, in capital cities and the regions, which is likely to continue through 2021. Households are awash with cash, the jobless rate is falling So, we’d expect house price growth to remain strong with interest rates so low.
“However we note the current pace of the housing market is not sustainable over the long term. And we also note the current world-wide housing boom, strongly suggesting this strong upturn in Australia has been driven largely by ultra-low interest rates and easier lending standards. In time, there will be a change in these monetary settings which will trigger a downturn.”
That’s a sound assessment.