SQM Research has released its stock on market report for July, which recorded a 1.1% rise in for sale listings nationally, with all markets except Sydney and Melbourne recording increases:
However, over the year listings were down a whopping 23.6%, exposing a very tight market.
Interestingly, both the number of new listings (<30 days old) and old listings (> 180 days old) fell in July.
New listings declined 1.2% in July, but were 5.4% higher year-on-year:
By comparison, old listings fell 6.2% in July and 49.8% year-on-year:
According to Louis Christopher, Managing Director of SQM Research:
“Total listings over July were predominantly impacted by lockdowns, particularly for Sydney whereby there was a 19.7% decline in new listings. Older listings also had another monthly fall, indicating strong absorption rates across the country. Melbourne’s market appears to be more active than this time last year, despite the most recent lockdown and mixed auction clearance rates. Going forward we are cautious for the market given the likely economic damage as a results of these latest lockdowns. That said, recently announced Government support packages will likely assist the housing market into the spring of 2021.”
CoreLogic reported similar results with total listings around 25% below the five year average in July:
The tightness in listings, combined with record low mortgage rates, is obviously driving the rapid price growth across Australia.