For the next phase, we need to count the listings. This means initially de-duplicating the listings data which are gathered across multiple channels. This process occurs across a number of phases. All the addresses are standardised to account for differences in the text of the listing address. Next the ‘clean’ listings data is matched with our ownership database (RP Data maintains Australia’s largest property database that includes details on virtually every property across the country); in this way we are able to allocate a unique ID to each listing record that is associated with every listing ever recorded (this is how we can calculate the selling time and rate of vendor discounting, or simply provide the marketing history on a property). Any listings that are left over go through a manual matching process where possible. Any records that are not manually matched are excluded from the counts. For example, last week we started with close to one million listings across the country and, through our matching process, funnelled this number down to 301,414 unique properties.
Although at a national level the total amount of stock on the market is of concern, levels are easing in some regions. Across the states, total listings are lower than at the same time last year in Queensland (-2.1%), Western Australia (-4.3%) and the Northern Territory (-3.0%). Similarly, total listings volumes are lower than at the same time year in the capital city markets of Brisbane (-3.5%), Perth (-11.3%) and Darwin (-14.2%).
Comparatively, listings are at much higher levels than the same time last year in Victoria (33.2%), Tasmania (25.6%) and the Australian Capital Territory (27.4%). At a capital city level, listings are sitting at elevated levels in Melbourne (31.5%), Hobart (22.9%) and Canberra (33.4%).
Overall, there is a lot of stock which has sat on the market for a long period of time which has gone unsold. It is also reported that many of these home owners are unwilling to budge on their asking price and, as a result, homes are taking longer to sell and listing volumes are elevated.
In an ideal world, we would see some of these vendors remove their home from sale if they are not serious about selling. Clearly, a large proportion of vendors aren’t in a position where they ‘need’ to sell.
While listings remain at elevated levels it is likely to continue to restrict any significant recovery in the housing market; buyers simply have too many homes to choose from at a time when there is not urgency in their purchase making decision. The spring selling season will be a big test for the market. This is a time when new listings generally rise. Will the trend of lower listings continue into spring or will we see the trend of lower listing numbers continue?
This article first appeared on RP Data.
