There are more properties for sale on the market.
The number of Australian residential property sale listings increased during October, which comes as no surprise, as there were five Saturdays during this month as opposed to the standard four, which provided sellers with an added weekend to open their homes to the market place.
Nationally, the number of unsold properties on the market has been recorded at 364,013 for October 2014 – a 7.3% increase month-on-month and 4.9% increase year-on-year.
- Total online residential listings increased during the month of October, recording a rise of 7.3% and coming to a total of 364,013.
- This figure represents an increase of 4.9% when compared to the corresponding period of the previous year (October 2013).
- Sydney recorded the highest monthly increase in stock levels of all the capital cities, increasing by 21.9% during October 2014 and coming to a total of 25,826.
- No capital cities recorded monthly declines in stock levels, however Melbourne recorded the most modest monthly increase, rising by 2,6% and coming to a total of 44,140.
- Darwin was the capital city to record the highest yearly increase in stock levels, climbing 31.9% since the corresponding period of the previous year (October 2013) and coming to a total of 1,851.
- Hobart has recorded the only yearly decrease in stock levels, falling by -0.2% since the corresponding period of the previous year (October 2013) and coming to a total of 4,227.
SQM Research has witnessed the gap closing in on year-on-year stock level declines for several months now, and it is apparent that surges in stock in a few capital cities in particular are predominantly responsible for the swing back towards recording yearly increases.
Perth specifically has recorded an 18.9% yearly increase in stock levels – a capital city which we believe has been experiencing a downturn for some time now.
Sydney’s stock levels have also recently swollen, recording a 4.6% increase on a yearly level, in stark contrast to the declines it had been recording over the past 12 months.
Sydney has also recorded a substantial monthly increase of 21.9%, which SQM Research perceives as an abnormal surge – a result that has not been witnessed in quite some time.
What’s going on?
Before making rash assumptions as to why this has occurred however, we believe it may be beneficial to wait until the November results are revealed, in order to assess whether this is a seasonal anomaly or an ongoing trend.
Alongside this, the nation’s asking prices have maintained their upward momentum with the Capital Cities’ average result for houses recording a 4.5% rise since this week last year, and the Capital Cities’ average result for units recording a by 5.4% rise since this week last year.