Apologies readers. Although we put up a Chart of the day on Friday containing SQM research’s stock on market data we neglected to provide a broader post on the rest of the data. Please find SQM’s latest newsletter below.
Figures released this week by property research house SQM Research revealed that residential property listings have increased substantially during the month of September 2011, coming to a total of 383,287 nationally. Growing by 20,494 listings since August 2011, total amount of stock on market increased by 5.6% month-on-month – exposing quite a significant rise in listings.
With all capital cities except Darwin experiencing a monthly increase as well as all capital cities experiencing considerable yearly growth, the ease that last month’s decrease in stock levels had on the buyer’s market has been quashed by the influx of sales listings during the month of September 2011.
Melbourne’s figures are of particular note as the city’s stock levels have surged 11.4% during the month of September, as well as 65.3% year-on-year.
Managing Director of SQM Research Louis Christopher says “After a fall in August, the national stock on market numbers rose in September, which was to be expected given the normal seasonal rise in listings that occurs this time of year. Nevertheless, listings are well up on numbers recorded last year.
“The Melbourne numbers are particularly alarming. However, it is possible the numbers might have been skewed by the October long weekend – in that listings were brought forward. Still, it represents what I now regard as a massive oversupply situation for the city and I believe it will translate to further house price falls from here.
“It should also be noted that the rises recorded for Brisbane, Perth and Hobart were lower than anticipated. We are watching Brisbane and Perth closely as there may well be signs that we are closer to the bottom in that market than what we expected.”
Key Points
Total online residential property listings increased by 5.6% during the month of September 2011, coming to a total of 383,287.
Nationally stock on market has risen by 24.2% year-on-year, increasing by 74,805 since September 2010.
The only capital city to experience a monthly decline was Darwin, falling by 3.3% (55) during the month of September coming to a total of 1616.
The capital city to experience the largest monthly increase was Sydney, climbing 12.9% (3,934) during the month of September – coming to a total of 34,540.
The capital city to experience the largest yearly increase in stock was Melbourne – increasing by 65.3% (19,595) since the corresponding period last year (September 2010), coming to a total of 49,613.
No capital cities have recorded yearly declines, although Perth has experienced the most modest yearly growth- increasing by 5.5% (1,075) since the corresponding period last year (September 2010), coming to a total of 20,552.
It should be noted that RPData’s latest data supports the notion that the fall in Brisbane is slowing. Perth on the other hand is quite different story. As usual we must wait and see what the medium term trend tells us, but overall I see this report as yet another blow to the Australian housing market… Unless you are on the “buyer side” of the equation obviously.
