Stock on market above normal April levels, prices stagnating: SQM Research

Stock on market above normal April levels, prices stagnating: SQM Research
Stock on market above normal April levels, prices stagnating: SQM Research

Last month saw more residences on the market than is normal for the season, prompting speculation that the market is entering a lull from research firm SQM Research.

A total of 348,222 residential properties were listed last month, down 1.2% from March. But according to SQM Research, April usually marks a more substantial drop in national stock levels.

There was a minor monthly increase in listings in Darwin, Melbourne and Perth, contributing to the softer than usual national drop. Sydney’s housing market was also a contributing factor, recording a yearly decrease of 13.5%, compared to year-on-year decreases in stock levels of 17% in recent months.

SQM Research’s Asking Prices Index showed that both dwelling and unit prices stagnated in April. Capital city average asking prices increased by only 0.1% for houses and 0.5% on a monthly basis.

According to SQM Research managing director Louis Christopher, the apparent lull in the market is not necessarily an indication that boom times are over.

“Listings did fall during the month, however this was expected due to the multiple long weekends. The fact they did not fall much, and indeed rose in some cities, provides an indication that the market might be in a brief lull, overall,” said Christopher.

“However as we have already said prior to today, each city is telling its own story. I for one am not convinced yet that the boom is over in Sydney. On the other hand, there appears to be ample evidence now that the mining downturn is affecting the Perth and Darwin housing markets.”

 

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National Sqm Research

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