Australia’s property market has remained tilted in favour of sellers for the 10th straight quarter – but the balance is shifting.
LJ Hooker reported that its buyer/seller index pointed towards sellers in the December 2014 quarter, as it has since the September 2012 quarter.
However, the balance shifted towards buyers, with an eight per cent increase in sales surpassed by a 13 per cent jump in listings.
Despite the strong growth in listings, supply still hasn’t caught up with demand, according to LJ Hooker.
The state-by-state breakdown gives a more nuanced view of the property market.
Residents of NSW, Victoria, Queensland, South Australia and the Northern Territory are living in a seller's market.
Western Australia and the ACT are a buyer's market, while Tasmania is in balance.
LJ Hooker’s analysis of property and mortgage statistics suggests the market should move closer to balance in the next quarter – although an interest rate cut might change things.
“If the Reserve Bank of Australia cuts rates, as most economists forecast, buyer demand will lift and the LJ Hooker buyer/seller index will move back strongly in favour of sellers,” it said.
“Stability of interest rates will see demand remain consistent and slowly see the index swing back towards a balanced market as new listings rise and lower economic growth impacts demand.”