SQM Research has released its Stock on Market data for March, which registered a 1.8% rise in total for sale listings:
However, there is significant variation in annual listings, with Brisbane and Adelaide experiencing severe stock shortages, whereas listings are higher year-on-year across Sydney, Perth and Darwin.
The next table shows that there has been a pick-up in new listings (less than 30 days), whereas old listings (greater than 180 days) have shrunk significantly:
SQM Research managing director Louis Christopher believes the acute shortage of stock across Brisbane and Adelaide will drive “massive” price rises this year:
The rise in listings over March will be welcome to home buyers who largely struggled for choice, last year. However we still have a shortage of stock in the market, particularly for Brisbane and Adelaide. Those two cities continue to record massive housing price rises as a result.
Going forward I expect we will shortly enter into a lack lustre period of activity in the lead up to the Federal Election. After that point there will be a looming interest rate rise for the market to consider.
Separate listings data from CoreLogic shows similar trends, with new listings rising but total listings tracking 30% below the previous five-year average in March:
Australian listings still very tight.
The decline in listings has also been driven by Brisbane, Adelaide and the regions, which helps to explain their strong price growth:
Listings tightest in Brisbane, Adelaide and the regions.
Alongside interest rates, changes in listings levels is a key metric to watch over coming months for those interested in house price movements. Where there is extreme tightness, price growth is likely to follow (and visa versa).
