Supply vs demand equation continues to drive market
If you’re a regular reader of my posts, you’ll probably already be aware that I place a fair bit of emphasis on the role that the law of supply and demand has on the property market.
I have no doubt that a substantial number of Australians in general, (and those who are relatively new to home ownership in particular), are not fully aware of the impact that an ongoing shortage of supply of properties for sale has had on keeping property prices higher despite the challenges of the pandemic, interest rate rises and economic uncertainty.
So it was interesting to read the latest data from Corelogic which makes some very clear connections between prices and stock availability.
In their June Update, the Australian Head of Research, Eliza Owen, said,
“At one end of the spectrum is Perth, with total listings sitting 45% below average stock levels, and a monthly capital growth rate of 1.8%. At the other end of the spectrum is Hobart, where there are 39.5% more listings than the historic 5-year average for this time of year, and home values are 0.5% lower. The additional choice in stock across areas like Victoria and Tasmania means vendors have to bring down their price expectations, and that brings values down."
Undisputable figures like these really spell it out, don’t they!
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In other trends worth watching, the Corelogic report also noted that over the three months to May, housing values in the lower quartile (the more affordable end of the market) rose at more than twice the rate that properties in the upper quartile did, (3.0% vs 1.2%). This confirms other data sources that have been suggesting that first home buyers have been more resilient and active in the current market than many commentators may have been suggesting.
As I often remind our clients, the most important asset you can have by your side when making a move in the current property market is objective advice from an experienced property professional with their finger on the pulse of your local market. So, if you are keen to access that level of assistance to help you achieve your property goals, don’t hesitate to give me or one of my team at Brand C a call on 9807 6686.
Brandon Chuah
Director
Brand C