CoreLogic’s July housing market report, released today, showed that the number of for sale listings across the nation continues to plummet, which is helping to fuel the rapid price growth experienced across the nation.
The next chart summarises the supply situation, with listings running more than 25% below the five year average. There has also been a sharp drop in new listings amid lockdowns:
At the same time, annual dwelling sales are running way above the decade average at levels not seen since the early-2000s property boom:
As such, home buyers are facing a sense of FOMO (Fear of Mission Out), which is fueling price rises, according to CoreLogic:
“With buyer demand so strong and active listings well below average, prospective buyers are likely to be feeling a sense of urgency due to the level of competition in the market”.
Cheap mortgages and an acute lack of supply is the recipe for rapidly rising property prices.