Higher listings and lower asking prices in a slowing market: SQM Research
Homeowners re-emerged from the summer break to list their property in a slowing market as listings across the nation rose in February by 4.6 percent to 317,984, according to SQM Research.
It was the nation's two biggest property markets, Sydney and Melbourne, that recorded the highest rise in listings.
They had a 19.3 percent jump in listings, closely followed by Melbourne at 19.1 percent.
Sydney’s listings are up by 22.3 percent from the same time last year, reflecting a large increase in properties available for sale as some homeowners seek to take profits given a slowing in the property market.
In contrast to other capital cities, listings were down in Hobart by 2.7 percent in February, to be down 31.8 percent from a year earlier, with a deep shortage of homes available for sale.
Melbourne stock levels also remain down from last year by about 10 percent, though a shortage of properties for sales has eased in that city.
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In Canberra, listings jumped by 15.5 percent, to be up 5 percent from the same time last year. In Brisbane, stock on market rose by 2.4 percent in February while in Perth listings rose by 2.9 percent. Listings barely changed in Darwin with a rise of just 0.1 percent over the month, to be up by just 0.4 percent over the year.
Louis Christopher, managing director of SQM Research said the rise was expected.
“The rise in February listings was expected as homeowners listed their properties with the new year well underway," he said.
"That helped to take the pressure off asking property prices, which were down in capital cities over the month to 6 March, especially in Sydney.
“We are also seeing increasing levels of stock hit the market in Melbourne, which may help to ease property price growth over the first half of 2018.
“However, in Hobart, home seekers are frustrated by a steep shortfall of properties available for sale as a combination of sharp price rises and the small amount of residential property there keep listings down,” he said.
Asking Prices
Capital city average asking prices fell one percent for houses and 0.7 percent for units for the month to 6 March. The largest monthly fall came in Sydney, where asking house prices fell 1.5 percent and asking unit prices slipped 0.6 percent. Over the year, prices are up by 5.5 percent and 5.9 percent, respectively.
Gains too have moderated in Hobart, with asking price for units up by just 1.1 percent over the year after falling 1.3 percent over the month. Asking house prices rose by 5.7 percent over the year after falling 0.4 percent over the month despite the shortage of properties for sale.
Year-on-year, asking prices are up most in Melbourne, with asking prices for houses up 19.9 percent and unit prices up 13.7 percent. Canberra too has recorded strong gains, with asking house prices up 16.6 percent over the year and asking unit prices up 7.8 percent.
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