The number of Australian residential property listings decreased during June, off the back of a five weekend month in May, which sent stock levels surging.
Stock for sale on real estate market has now stabilised once again with national levels coming to a total of 347,074– a monthly fall of -5.3%.
- Total online residential listings decreased during the month of June, recording a fall of -5.3% and coming to a total of 347,074.
- This figure represents a decrease of -3.3% when compared to the corresponding period of the previous year (June 2013).
- No capital cities experienced a monthly rise in listings; however Darwin recorded the smallest decrease of all capital cities, decreasing by 0.8% during June 2014 and coming to a total of 1,531.
- Sydney recorded the largest monthly decrease in stock levels, falling by -12.7% and coming to a total of 22,504.
- Darwin was the capital city to record the highest yearly increase in stock levels, climbing 18.7% since the corresponding period of the previous year (June 2013).
- Canberra has recorded the most substantial yearly decrease in stock levels, falling by -11.3% since the corresponding period of the previous year (June 2013) and coming to a total of 3,250.
- SQM Research’s Asking Prices revealed that capital city asking prices rose by 0.8% for houses and 0.5% for units for the June quarter
[sam id=37 codes=’true’]What perhaps is of particular importance in this month’s result, is the yearly change, where SQM Research has recorded falls in every capital city except for Darwin and Perth.
We note that due to the downturn in the commodities boom, Perth has experienced an uptick in both stock levels and rental vacancies, as the demand for accommodation in the locality weakens.
SQM Research acknowledges the surprising yearly and monthly decrease in Canberra’s stock levels, which up till now had been trending differently.
However, as can be seen above, Canberra’s asking prices are continuing to fall.
According the SQM Research Asking Prices series, capital city asking prices rose by 0.8% for houses and 0.5% for units for the June quarter.
The strongest result from the capital cities came from Sydney units; rising by 1.8% for the quarter. The weakest result came for Canberra houses, with asking prices falling by 3.8% for the quarter.
Overall, the index recorded yet another mixed bag for the national housing market. The outlook at this stage does not look materially different.
Based on these numbers the ABS will likely report a patchy June quarter with a 0.5% to 1.0% rise.
However, I am mindful that the June quarter historically has been the strongest period for price rises on the ABS’s housing price index, so it is very possible the official numbers may produce faster growth rates.
Back in September 2013, our predictions were a 7-11% capital growth as an average for the capital cities. So far we believe that forecast is very much on trace.
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