Rising stock levels signal seller confidence

Rising stock levels signal seller confidence

Posted on Thursday, September 05 2013 at 1:27 PM

An increase in Australia-wide listings indicates sellers are more confident about the property market, according to one analyst.

SQM Research has
released figures showing a rise in national stock levels during August of 2.6
per cent to a total of 360,414.

Year on year, the country still recorded declines in listings in every
capital city besides Brisbane and Darwin, but it appears sellers are becoming more
bullish about property, according to the release.

In Sydney, the 9.1 per cent increase in stock
numbers during August indicates sellers are becoming less desperate, according
to the SQM report.

“This rise may reveal that vendors are beginning to make their move.”

Louis Christopher, managing director at SQM Research, says along with the
traditionally busier spring-selling period, improved vendor confidence will see
even more stock come onto the market.

“Potentially with more confidence instilled in the national economy,
vendors will be encouraged to place their properties on the market.”

Chris Gray, director of
property consultancy Your Empire, believes the statistical rise is too modest
to indicate a trend, but from his on the ground experience, seller confidence is

“With the election out
of the way next week, that should help, spring should help… so you’d hope that
there would be more properties on the market.”

Gray says a rise
in listings, in his opinion, will fuel value gains.

“The more property
that comes on, more buyers will be around as well and there’ll be more capital
growth and I think it will just kind of spiral and then hopefully just keep
pumping the market.”

Gray is certain
recent price rises are likely to continue in real estate.

“The tip for
buyers is, we’ve been telling them to buy for the last few years anyway, I
think it’s going to get harder and harder week by week.”

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