Housing stock up 22%
By
Adam Smith
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17/08/2011 4:00:00 AM
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Housing stock on the market has climbed 22% since last year, SQM Research has revealed.
Residential listings for July have risen 4% since June, and are 22% above the corresponding period in 2010. Every capital city except Darwin and Hobart saw a month-on-month increase, with Hobart remaining unchanged and Darwin falling only 1%.
Melbourne has experienced the largest year-on-year increase, climbing 45% since July 2010. The city also posted a 6% month-on-month increase.
SQM Research managing director Louis Christopher said the results foreshadow a weak Spring selling season, and could bring about further declines in property values.
"The latest rise in stock levels does not bode well for spring when seasonally, tens of thousands of new listings come on to the market. Unless there is a flash interest rate cut by October, house prices will almost certainly head south from here," Christopher commented.
Christopher stated that he does not expect a "collapse of the market" as few of the vendors represent forced sales. However, he said the environment would not be "pleasant" for vendors.
"Buyers are largely going to be in the commanding position when it comes to negotiations this Spring," Christopher remarked.
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House prices hit by further declines
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