11th Hour Rush – November Listings Spike by 26,605, 7.9%
- Property listings spike to highest level since 2009 in Sydney
- National listings jumped 7.9% in November to 361,619 from 335,014 in October
- Sydney +7.5%
- Melbourne +11.6%
- Brisbane +8.4%
- Perth +9.7%
- Adelaide +11.8%
Louis Christopher, Managing Director of SQM Research, spoke about the listings spike in a statement:
“November listings usually jump ahead of the market slowing during the Christmas and New Year’s break, so the results are expected. That said, the year-on-year increases in Sydney and Melbourne are large. The market in these big cities is now flooded with stock. Vendors who do not price their properties realistically will not sell in this market. It has been a particularly bad spring selling season for vendors and agents alike,”
“It is also likely this will be the peak in listings for the year as we expect the December reading to fall given the Christmas break,” he said.Louis Christopher, SQM Research
Vendors Discounting For Quick Sales
Asking prices fell -0.7% across the country, with Sydney seeing the largest discounts of -2.3% overall, while home owners in Hobart were the darling of the nation at +1.4%.
Capital cities average asking prices now sit at $932,600, while units are priced at $569,300 without much movement.
A listings spike should hopefully see some more optimism within the industry, as recent auction clearance rates have brought no joy for agents, and settled sales are at their lowest point since the GFC.
RBA: Investors Getting Squeezed
In their recent monthly meeting, Philip Lowe, Governor of the RBA, said that the board had taken notice of the slowing real estate market nationally.
“Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Credit conditions for some borrowers are tighter than they have been for some time, with some lenders having a reduced appetite to lend. The demand for credit by investors in the housing market has slowed noticeably as the dynamics of the housing market have changed. Growth in credit extended to owner-occupiers has eased to an annualised pace of 5–6 per cent. Mortgage rates remain low, with competition strongest for borrowers of high credit quality.”Philip Lowe, Governor