Stock levels rise as market steadies
Stock levels rise as market steadies
Posted on Wednesday, June 04 2014 at 9:18 AM
Market analyst SQM Research says increased property listings during May signal a slowing Australian market.
According
to SQM’s numbers, national stock on market rose by 5.2 per cent during the
month bringing the total number of listings to 366,413.
SQM
recognised that five Fridays in May, as opposed to the usual four, provided an
extra week to gather listings making for a larger sample.
Louis
Christopher, managing director of SQM Research, says despite this anomaly, results
indicate the market is cooling.
“Some
heat has come out of the national housing market as SQM Research is no longer recording
the large scale, year-on-year decreases in listings that were occurring this
time last year.”
Sydney
recorded the highest monthly rise in listings of all capital cities, increasing
by 12.9 per cent to reach 25,699.
No
capital city recorded a monthly decrease in stock levels, however Hobart
recorded the most modest increase, rising by 1.7 per cent to total of 4499.
Compared
to the same time last year, national listing fell 1.8 per cent, with Canberra
recording the largest annual fall – down by 11.4 per cent.
Christopher
says the results make a case for keeping the cash rate low.
“Right
now, it appears to be a market that is steady and not too strong yet not too
weak.
“At
this stage I don’t believe the market is at the point where upward pressure
would be placed on interest rates.”
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