Residential property listings increased in all cities during October with the market now flooded with more properties than during 2008, one expert has warned.
SQM Research managing director Louis Christopher says the increase in listings is clear evidence the market is softening, and says the sheer amount of properties means buyers can now take their pick of the litter.
“It means the housing market is slowing down and we are expecting more listings to come into the market in November, in Brisbane there’s been a 50% increase in stock levels year on year, and that’s a huge increase.”
“Melbourne is also a fairly rapid increase, and that recorded more stock in the market than in 2008. Sydney doesn’t look too bad, but not as bad Brisbane. The market is weakening in terms of prices, and this will continue as more listings come onto the market.”
Melbourne has recorded the largest increase in property listings over the quarter, with listings jumping by 20.2% in the three months to October to a total of 265,21 houses and 9,547 units. Listings jumped by 28.6% over the year.
Sydney recorded the second-largest increase for the quarter at 14.5%, with listings at 20,012 houses and 12,370 units, representing a 12.6% rise over the year. Canberra followed closely with a 14.2% change for the quarter, along with a 33.1% increase over the year.
Brisbane recorded a 12.6% rise for the quarter with 24,412 houses and 5,787 units, while Darwin followed with a 12.5% increase, with 949 houses and 612 units.
Hobart was the city with the smallest increase, with listings jumping only by 1.1% during the October quarter, and by 19.1% during the year.
Only eight out of the country’s 52 property regions recorded a decline in listings: the New South Wales Off Shore, Queensland Far North Coast, Gold Coast South, Queensland North Coast, Yorke and Lower North South Australia, Central Hobart, Tasmanian East Coast and South East Perth.
“What this means is that growth will continue to remain soft,” Christopher says. “Property markets will continue to weaken in growth.”
Christopher also disputes the fact a housing shortage is now plaguing the market, and says these figures show that “there is no shortage of real estate in Australia right now”. He says these listings are also occurring across all price ranges, including more affordable to high-end properties.
Christopher also warns that with price growth remaining flat over the next 12 months, buyers will be able to snap up some bargains. He warns sellers to remain vigilant and watch the market for any further movements.
“There is a downside here, considering that buyers may consider putting in a cheeky bid. But it very much depends on their area. Sellers need to be aware of the downside risks over the next 12 months.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
