The latest SQM Research analysis of the residential property market showed a fall in listings in July by 5.1 per cent and by 9 per cent in year-on-year terms across all capital cities.
The most dramatic reduction in residential property listings for July was experienced by Hobart with a 10.5 per cent drop. Melbourne was the next city most affected with a 7.4 per cent listing decline.
Sydney witnessed a 5.7 per cent decline in listings for the month, attributed mainly to vendors willing to wait out the winter months to benefit from the spring selling season.
“There was some seasonality in the numbers, which contributed to the drop in listings. So, for example, June had an extra weekend while July did not,” SQM managing director Louis Christopher said.
“That can make a big difference as each Friday there are several new property listings that enter the market, and so we think June listings were overinflated by this fact.”
Christopher highlighted the fact the trend had not helped the short supply of stock already existing in both Melbourne and Hobart.
“This has helped to push up asking prices for houses and units in those cities to well over the double digits, with Melbourne’s asking house price growth leading the nation at almost 22 per cent over the year to August 1,” he said.
In regard to the 12 months ending 1 August, Hobart again saw the highest fall in residential property listings at 23.3 per cent, followed by Melbourne, where listings fell by 20.5 per cent.
In line with the supply shrinkage, prices for houses in the major capital cities jumped by 10.1 per cent, but monthly prices bucked this logical trend, falling by 1.2 per cent for the period ending 1 August.
Prices for units located in the capital cities rose 4.8 per cent for the year and 0.3 per cent during July.