It’s clear the property sector is in the midst of a consolidation – something I have been predicting for a few months. I saw this coming because finance approvals were falling (there were fewer buyers applying for finance) at a time when there were more properties on the market.
BY MICHAEL YARDNEY
According to SQM Research residential property listings (properties for sale) increased in all cities during October with the market now flooded with more properties than during 2008.
SQM Research managing director Louis Christopher says the increase in listings is clear evidence the market is softening.
“It means the housing market is slowing down and we are expecting more listings to come into the market in November…. and that’s a huge increase,” he says.
Melbourne has recorded the largest increase in property listings over the quarter, with listings jumping by 20.2 per cent in the three months to October to a total of 26,521 houses and 9,547 units.
Listings jumped by 28.6 per cent over the year.
Sydney recorded the second largest increase for the quarter at 14.5 per cent, with listings at 20,012 houses and 12,370 units, representing a 12.6 per cent rise over the year. Canberra followed closely with a 14.2 per cent change for the quarter, along with a 33.1 per cent increase over the year.
In Brisbane there’s been a 50 per cent increase in stock levels year on year. Brisbane recorded a 12.6 per cent rise for the quarter with 24,412 houses and 5,787 units, while Darwin followed with a 12.5 per cent increase, with 949 houses and 612 units.
Hobart was the city with the smallest increase, with listings jumping only by 1.1 per cent during the October quarter, and by 19.1 per cent during the year. Sure there’s now an oversupply of properties on the market.
What these figures don’t show is the segmented nature of the markets. While the market is less buoyant than earlier in the year, good properties are still selling quickly however B and C class properties have been hit hard.
Michael Yardney is the director of Metropole Property Investment Strategists, a best-selling author and one of Australia’s leading experts in wealth creation through property. Subscribe to his e-magazine at www.propertyupdate.com.au. For more information about Michael visit www.metropole.com.au.
This ongoing shortage of dwellings is one of the reasons I feel confident our property markets won’t collapse as some overseas economists are suggesting……. Michael Yardney ( the expert ) last september.
It’s clear the property sector is in the midst of a consolidation – something I have been predicting for a few months. I saw this coming because finance approvals were falling (there were fewer buyers applying for finance) at a time when there were more properties on the market…..Michael Yardney ( the expert ) today.
Comment by stuart — November 21, 2010 @ 8:30 pm
Thanks for pointing out my comments Stuart.
Once of the challenges of going on the public record with my commentaries is that they are “on the public record.” Fortunately I’ve been pretty accurate over the last few years, but clearly I won’t always get things right – there are too many X-factors (unknowns that come out of the blue.)
Last September – over a year ago – when there was talk of Australian property values falling by 20, 30 and some even said 40%, I explained why the overseas economists were (in my opinion) wrong.
Fortunately, my research was proven to be correct and prices didn’t collapse. In fact in most of our capital cities property prices increased substantially.
Now the market is moving into the next phase of the property cycle and I’m calling it as I see it.
I still can’t see property prices collapsing. Yet I see them falling slightly in some areas and remaining flat in others. Indeed overall they have been flat since May.
However this doesn’t really show the strength in some segments of the market. But that will be the topic of another blog.
Comment by Michael Yardney — November 23, 2010 @ 8:00 am
I am a local real estate agent on the Northern Beaches of Sydney and my observation is coming into 2011 there are limited property listings and still enough buyers going around to keep prices stable and at least most expectationms from vendors are being satified by the end result and sale. I personally like a normal market and believe at least the Northern Beaches will always be in demand.
Regards Grant Matterson
Comment by Grant Matterson — March 23, 2011 @ 7:58 am