New stock on market data suggests the housing market is losing steam and is heading into more stable territory.
The national level of properties on the market rose during May, increasing 5.2 per cent to 366,413 from April, according to SQM Research.
However, stock levels have stabilised considerably, according to SQM Research managing director Louis Christopher, who said the "frenzy" in the market that was in play during the corresponding period in 2013 is dissipating.
“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," he said.
“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 an upward pressure would be placed on interest rates.”
With a 21.7 per cent yearly increase, the only capital city to experience a radical rise in listings since May 2013 is Darwin, where stock level increases have been an ongoing trend for some time now.
Conversely, Canberra is experiencing the most substantial decrease in stock listings since this time last year, with an 11.4 per cent decrease, which is a surprise given the ongoing expected downturn.
SQM Research’s Asking Prices Index revealed house and unit prices have continued to stand still on a capital city average level month on month – recording a 0.7 per cent increase for houses and 0.5 per cent increase for units.