Australia’s housing market is unbelievably tight

CoreLogic has released its Monthly Housing Chart Pack, which shows that new listings were running 2.6% below the five-year average in July 2021:

New listings

More importantly, the total number of homes for sale is running 27.1% below the five-year average:

Total listings

At the jurisdictional level, annual stock levels have fallen across every market except Melbourne, which was in hard lockdown at the same time in 2020:

Total listings by state

At the same time, sales volumes are running a whopping 42.6% above the five year average:

Sales volumes

Moreover, the average number of days taken to sell a home has shrunk from 51 days in July 2020 to just 29 days in July 2021:

Time to sell

No wonder Australian property values are rising so fast with record low mortgage rates (see next chart) running head long into a scarcity of stock:

Record low mortgage rates

FOMO is ruling the market.

Unconventional Economist
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