Excessive yearly falls in sales listings

Excessive yearly falls in sales listings

Posted on Monday, July 06 2015 at 12:36 PM

The number of Australian residential property sale listings fell in all capital cities during the month of June, according to SQM Research, with falls in Sydney and Melbourne larger than expected for this time of year.

Nationally, the number of listed properties fell to 335,971 in June
2015, falling 6.5 per cent from May 2015, with the number of listings down 3.2
per cent from a year earlier.

Once again Sydney and Melbourne recorded the heaviest monthly change, as
a result bringing the national average down.

Year-on-year results indicate that Melbourne, Sydney and to a lesser
extent Hobart, experienced excessive yearly falls. 

Melbourne recorded the biggest yearly change, with listings falling by
20.2 per cent, reducing the number of properties for sale to 34,498. Sydney
soon followed with listings down 15.7 per cent from this time last year. Hobart
recorded a yearly change of 8.4 per cent.

Managing director of SQM Research Louis Christopher says: “While
the national result is only down marginally from levels recorded this time last
year, the Sydney and Melbourne result clearly reveals the ongoing boom in these
two cities.

“We have not seen Sydney with so
few listings and Melbourne’s stock is now being quickly absorbed. Potential
vendors in these two cities are holding back on selling their property in the
hope (and fear) that the market is going to rise from here.

“And with this type of squeeze on
the market, prices will indeed most likely rise from here.”

SQM Research figures show that asking prices for Sydney houses continued
to climb over June, with a total monthly rise of 2.8 per cent. The median
asking price for a house has now reached $1,120,700 while the median unit in
Sydney dropped over June and is now advertised at $615,400.

In contrast, median asking house prices in Darwin continue to fall with
year-on-year comparison showing a 12-month decline of 2.4 per cent for houses
and 8.4 per cent for units. Perth also recorded yearly falls, with asking
prices for houses down 3.6 per cent and 1.0 per cent for units.


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