New data from SQM Research shows that the number of homes that have been listed for sale nationwide for more than 180 days increased to 49,813 in May.
The number of Sydney dwellings that have been on the market for more than six months rose by 9.4% to 4,032 in May, whereas the number of ‘stale’ dwellings in Melbourne rose by 6.2% to 6,378:
According to SQM Research Managing Director, Louis Christopher, “a number of properties which were already listed struggled to sell over the month and that pushed up the counts of old listings – a phenomenon that happens during market slowdowns”.
Nevertheless, new and total listings fell over the month of May, “due in large part to the election with many sellers and buyers waiting on the market sidelines for the outcome”:
Looking ahead, Louis Christopher expects “a surge in new listings for this current month, even while we have now reached the quieter winter months”. This view is based on “a surge in new auction listings”.
Louis Christopher is also tipping “price falls of up to 8% this year for Melbourne and Sydney and low net single digit growth for the other cities”.
The outcome will obviously depend on how aggressively the RBA hikes interest rates.
