Property industry profits are crashing following the collapse in home sales and the steepest correction in property prices on record.
Last week we saw Domain’s profits slide 24% on an “unprecedented” collapse in listings.
And on Monday, real estate company McGrath reported an 83% plunge in underlying net profit to $1.12 million for the six months to December after a weaker-than-usual spring season.
The below charts from CoreLogic tell the story.
Sales volumes plunged 19% in the year to January, with McGrath’s stronghold of Sydney crashing 29%:
For sale listings were also down 30% on the five-year average at the end of January:
With the RBA set to hike rates further over coming months, homeowners and home buyers alike are likely to remain on the sidelines.
Accordingly, listings and sales volumes will remain depressed.
Won’t somebody think of the poor property cartel?
