New listing data reveals supply and demand problems
Listings are on the decline, yet they are still holding strong when compared with the last few years, which could be a point of concern for investors, the latest Property Pulse from CoreLogic shows.
Analysis of the last 28 days to 22 June sees, Australia-wide, new listings down 6.7 per cent compared to last year to 21,4879 listings; this is the lowest point since 2012, yet total listings are up 7.3 per cent higher to 108,436, at their highest point since 2012.
The majority of the capital cities, according to CoreLogic research analyst Cameron Kusher, is likely due to reduced demand for housing as potential vendors hold off putting stock up.
However, in some of the softer markets such as Sydney and Melbourne, total listings are higher, which highlights the current difficulty in trying to sell stock.
If this continues through to spring, then investors should be concerned, Mr Kusher said.
“The real litmus test for the housing market will be what happens in spring, particularly in Sydney and Melbourne. If, as usually occurs, new listings ramp-up and a lot more stock becomes available for sale, this could create further downwards pressure on values,” Mr Kusher said.
“Don’t be surprised though if with tightened credit and an already weakening housing market, that spring this year is a lot more muted than what we’ve seen over recent years.”
The Property Pulse also broke down the state of new listings and total listings over the last 28 days, and compares this to how listings were performing for the same period of 28 days last year:
Sydney
Over the last 28 days new listings were down 13.1 per cent to 5,601, while the total number of listings were up 21.7 per cent higher to 26,103.
Melbourne
Similar to Sydney, over the last 28 days new listings were down 4.8 per cent to 6,821, while the total number of listings were up 10.5 per cent to 30,029.
Brisbane
Consistent with the overall trend, over the last 28 days new listings were down 3.2 per cent to 3,789, while the total number of listings were up just 1.2 per cent to 19,738.
Adelaide
Over the last 28 days, new listings were down 8.5 per cent to 1,646 the lowest since 2012 and, bucking the general trend, total listings were also down by 2.8 per cent to 7,789, the lowest since 2014.
Perth
There was little movement in Perth, as new listings declined only 1 per cent to 3,007, the lowest since 2012 and total listings were up only 1.7 per cent.
Hobart
Over the last 28 days new listings were up 8.5 per cent to 344, but total listings were down 23.6 to 951, a historic low.
Darwin
Another capital city to buck the general trend, over the last 28 days, new listings were down 3.3 per cent to 176 and total listings were down 11.8 per cent to 1,446.
Canberra
Our nation’s capital saw new listings over the last 28 days decline 18.4 per cent to 465, with total listings also declining 4.9 per cent to 1,753.
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