Lowest turnover over the past 12 months in resource towns while lifestyle markets and new housing areas seeing higher levels of turnover.
Research out today by CoreLogic shows that over the past year a shortage of properties coming to market for sale is beginning to impact on property market conditions with most capital cities and major regional areas of the country affected.
Added to this, affordability constraints appear to be preventing some market segments from being more active.
Over the 12 months to June 2016, just 4.9% of total dwelling stock nationally transacted.
Based on this figure it would take around 20.5 years for the total national housing stock to turnover.
The low turnover rate also highlights why price-based measurements such as median prices are not the most reliable for tracking value movements across the housing market given that so little of the total housing stock actually transacts in any given year.
Note: A turnover figure is different to the often quoted average hold period figure.
Turnover looks at the proportion of total stock which is selling while the hold period calculation looks only at those homes transacting and measures the length of time between sales.
The two figures highlight that there are properties which transact on a more regular basis while there are others which rarely sell.
For today’s summary, CoreLogic highlights the 25 council areas nationally that had the lowest turnover of housing stock over the year to June 2016. (Ref: adjacent 1st table).
What is immediately noticeable is the prevalence of regions linked the resources sector.
These areas have been characterised as having plenty of properties for sale but few people actively looking to buy.
As a result, in some of these regions only a small overall proportion of housing stock has actually transacted.
For this analysis, CoreLogic also identified 25 council regions to record the greatest turnover of housing stock over the past year across coastal and lifestyle markets.
It also includes a number of council areas where there has been significant housing supply additions over the year.
The increased level of turnover in lifestyle markets indicates that the popularity of purchases in these markets has returned after many years in the doldrums. (Ref: adjacent 2nd table)
We’re anticipating that turnover will remain low in mining towns due to a lack of willing buyers.
On the other hand, new housing areas and lifestyle markets are expected to continue to see relatively high levels of turnover throughout the coming year.