Figures released by SQM Research reveal national residential listings rose in September 2017 by 3.1% to 328,751, with stock levels rising in most capital cities, led by a jump in Sydney and Melbourne.
Despite this, asking prices for dwellings rose during the month for all capital cities including the two largest cities, indicating that sellers have not yet adjusted to the slower market.
Compared to a year ago, listings were up by 12.3% in Sydney, the greatest increase of any capital city.
However, national residential property listings were down by 5.4%, with listings down the most in Hobart (-25.5%) and Melbourne (-12.9%).
- National listings rose 3.1% during the month of September to 328,751 residential properties, though they are down 5.4% over the year.
- Listings rose the most in Sydney, up by 10.3% over the month to 30,448 to be up 12.3% over the year.
- Melbourne recorded a large monthly rise in listings of 8.2%. But listings are down 25.5% over the year.
- Capital city asking prices rose over the year to October 5 by 10.6% for houses and 6.5% for units.
We know policy makers including the Australian Prudential Regulation Authority (APRA) have been very focused on slowing the Sydney housing market down. To this end, it appears their efforts have worked.
I think more and more sellers are coming to the market hoping to sell at the peak, or close to it. Yet they are coming to the market with very lofty pricing expectations, hence we have seen auction clearance rates fall and days on market increase.
There will be many disappointed sellers in Sydney by the end of this Spring selling season.
Elsewhere, Hobart was the only capital city to record falls in listings for the month, falling by 3.9%, which suggests ongoing booming market conditions for the city.
Perth and Adelaide are now recording year-on-year declines in listings, falling by 3.5% and 2.6% respectively.
Captital city asking prices rose 0.6% for houses and 0.2% for units for the month.
The largest monthly rise came from Perth houses, rising by 1.3%.
Hobart units recorded the largest monthly fall of 0.7%.
Annual growth in asking house prices has slowed in Melbourne from around 22% last month, to around 20% for the 12 months ended October 3, while growth in Sydney has slowed to just below 10%.
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