Aussie property listings collapse by 26%

SQM Research has released its Stock on Market Report for September, which posted a 0.6% decline in property listings over the month with listings down a whopping 25.9% year-on-year:

As shown above, all jurisdictions other than Darwin posted a decline in annual listings, with Canberra (-41.1%), Brisbane (-32.1%), Hobart (-31.8%), Adelaide (-26.5%), and Sydney (-26.0%) recording massive falls.

New listings (less than 30 days) rose 11.9% over September and were 18.0% higher over the year:

By contrast, older listings (greater than 180 days) fell 4.1% over September and were down 54.0% year-on-year:

Commenting on the results, SQM managing director Louis Christopher expects listings to rise sharply once lockdowns are lifted:

“As we enter into the traditional spring selling season, there remains a shortage of listings across Australia. Demand continues to outstrip supply which is pushing up prices despite the uncertainties and restrictions surrounding Covid19.

Going forward we now expect a rise in housing listings for October and November due to the imminent lifting of lockdown in Sydney and Melbourne.

However, the expected rise in listings is unlikely to create a housing slowdown prior to Christmas as low interest rates continue to stimulate the housing market and the expected economic uplift following the end of lockdown will also likely create stimulus for housing.“

Separate listings data from CoreLogic shows similar results, with listings running 28.1% below the five year average:

Advertised listings

At the same time, sales volumes continue to run hot:

Property sales volumes

This shows a market where buyer demand is vastly stronger than supply, which is driving the strong price appreciation.

Unconventional Economist

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