New analysis has found how much extra housing stock can be found around the country and what it means for the property market at large.
According to CoreLogic’s research analyst, Cameron Kusher, Australia has 5.3 months’ worth of housing supply available for purchase – the highest figure since 2012.
“At the same time last year, there was a much lower 3.9 months of supply. The lift in months of supply is a function of a lift in the amount of stock available for sale and the ongoing fall in transaction volumes,” Mr Kusher said.
“The months of supply figure highlights why the housing market is generally falling.
“Credit conditions are tight, which means fewer buyers, and generally leads to a slower rate of sales. Although vendors have responded by bringing fewer new properties to the market, total stock for sale remains elevated leading to a heightened months of supply figure.”
Mr Kusher’s analysis also looked at each of the capital cities across the country:
Housing stock in Sydney is sitting below the country average at 4.1 months, yet for the state, it is a seven-year high, according to Mr Kusher.
“In comparison to the previous seven years, the months of supply figure is now the highest it has been at this time of year any time over that period,” he said.
“Months of supply is elevated due to much lower transaction volumes and an elevated volume of stock for sale.”
Melbourne is performing above the national average at 5.9 months, which is another seven-year high, due to a slower rate of sale and higher stock for sale – similar conditions to Sydney.
Also like Melbourne, Brisbane saw housing supply at 5.9 months, which is a seven-year high for the capital city, due to a higher volume of stock for sale combined with lower transaction volumes.
Trending below the nation’s average, Adelaide is sitting on 3.8 months of housing supply due to transaction volumes slightly higher while volumes of sales stock is significantly higher.
Perth currently has 7.7 months of housing supply, making it the fourth capital city to record a seven-year high, with Mr Kusher identifying values and transaction volumes declining while stock for sale increased.
Sitting at the lowest level of supply on the market out of all the capital cities at 2.8 months, Hobart’s low levels have been due to a lack of stock for sale.
Darwin has recorded the highest level of months of supply at 9.0, which is a three-year low for this time of year. The reasoning behind the high levels was due to a high supply of stock and low rate of sale.
Canberra is sitting under the national average for months of supply at 3.6, which is its highest level in six years. The reasoning behind the figure was due to an increased volume of stock for sale combined with sales being higher than they were 12 months ago.