Residential housing stocks stabilise
Housing stocks stabilised during June, according to recent findings from SQM Research. The news will be welcomed by those seeking variable home loans in cities such as Perth, while investors in cities such as Canberra and Sydney find themselves in a favourable position for securing tenants.
Residential property listings dropped during June, following activity in May that saw a surge in stock levels.
"Stock on market has now stabilised once again with national levels coming to a total of 347,074 - a monthly fall of 5.3 per cent," SQM noted in a July 3 statement.
Stock figures dropped year-on-year to June across all the nation's capital cities, with the exception of Perth and Darwin.
The conditions in these two cities may favour those looking to take out home loans in order to purchase property, given the annual boost in housing stock levels.
"We note that due to the downturn in the commodities boom, Perth has experienced an uptick in both stock levels and rental vacancies, as the demand for accommodation in the locality weakens," SQM stated.
While Perth experienced a 4.4 per cent monthly drop in stock levels, its annual increase (5 per cent) indicates that conditions may be positive for home buyers, as a boost in stock numbers puts downward pressure on house prices.
In Darwin, housing stock increased 18.7 per cent year-on-year to June, making it a potentially ripe pick for real estate purchases.
Stocks in Adelaide fell 6.3 per cent in the month to June and by 8.2 per cent year-on-year to June. Melbourne house stocks dipped by 8 per cent month-on-month to June and fell 7.5 per cent year-on-year.
In the Harbour City, a whopping 12.4 per cent monthly drop in housing stock may see existing homeowners do well, and would-be home buyers face heaving prices. However, year-on-year, housing stock has decreased by 5.1 per cent, well behind the monthly jump.
Image credit: Chris