The opportunity to buy at the bottom of Sydney’s residential market has passed, according to the managing director of SQM Research, Louis Christopher.
Recent figures released by SQM Research show residential property listings fell by just under three per cent nationally over the year ending January 2013, and 1.9 per cent over the last month.
According to SQM Research, this potentially suggests that stock is beginning to be absorbed, and buying activity may be starting to gain momentum in capital cities such as Sydney and Darwin.
“There are a number of signals now that the market is gaining some traction. I think the interest rate cuts are now working and that a housing recovery is now occurring. I now place the bottom of this market at the beginning of the December quarter 2012,” Mr Christopher said.
Sydney has seen particular interest from buyers in recent months, recording a six per cent fall in stock over last month and 13.1 per cent over the year. These numbers represent the lowest amount of listings for January since 2010 and the lowest overall amount of listings in Sydney since April 2010.
Stock on the market is an indicator of supply, Mr Christopher told Smart Property Investment, which can reveal if the suburb is a buyer’s or seller’s market.
“It tells us about if there too much supply or if the supply being absorbed. Is the amount of stock on the market being rapidly taken up by buyers or is it overhanging, and that gives you a very good idea in terms of whether the property has moved or not.”