House prices in Sydney are going to get higher as houses available to purchase in Sydney hit an all-time low.
The number of properties listed for sale in Sydney dropped 13.7% over June, according to statistics from SQM Research. Compared to June last year, the number of properties available for sale is down 15.7%.
The environment isn’t much better for Australia’s second largest city, Melbourne either. The number of properties listed for sale in Melbourne dropped 13.6% over June. The number of properties available on the market is now 20.2% less than this time last year.
The managing director of SQM Research, Louis Christopher says levels in Sydney are the lowest he has seen, which means Sydney-siders should brace themselves for even higher prices.
"While the national result is only down marginally from levels recorded this time last year, the Sydney and Melbourne result clearly reveals the ongoing boom in these two cities,” he said.
“We have not seen Sydney with so few listings and Melbourne’s stock is now being quickly absorbed. Potential vendors in these two cities are holding back on selling their property in the hope (and fear) that the market is going to rise from here. And with this type of squeeze on the market, prices will indeed most likely rise from here.”
Asking prices for Sydney houses continued to climb over June, according to SQM Research, with a total monthly rise of 2.8%. The median asking price for a house has now reached $1,120,700. The median asking price for a unit in Sydney dropped over June, however, and is now advertised at $615,400.