Housing stock shock for August

By Adam Smith | 14/09/2011 3:00:00 AM | 0 comments

Housing stock on the market has fallen for August, a result one property analyst has said is surprising.

New figures from SQM Research show total housing stock fell 3.8% from July to August, and all capital cities except Hobart saw month-on-month declines. Listings remain elevated on last year's levels, with a 23.6% year-on-year increase nationally.

Perth saw the largest monthly decline in listings. Stock in Perth was down 7.1% for the month. The city also experienced the most modest year-on-year increase at 17.8%. Melbourne saw the largest yearly increase in listings, up 56.8% on the same period last year.

As the Spring selling season kicks off, SQM Research managing director Louis Christopher said the decline in stock was unexpected.

"The results for August have been surprising. We were expecting a rise in listings and instead we have had a noticeable fall. This still could be a seasonal effect and it also could be vendors withdrawing their properties in the hope of relisting during better market conditions," he commented.

Louis has nevertheless predicted listings to swell during the selling season.

"If that were to not materialise or only rise marginally, this would be one signal to us that the peak in supply would be reached. For now it is a wait and see situation, and of course monitoring other indicators on the demand side," he remarked.

Related stories:

Stock overhang growing: RP Data

Housing stock up 22%

Unrealistic vendors 'wasting time'

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