More homes for sale on the way
There has been concern that the number of available houses for sale is drying up, especially in the hot markets of Sydney and Melbourne. However, the latest figures from SQM Research show that stock is only 0.1 per cent lower across the country than it was this time last year – so where have these worries come from?
There are a few well-known seasonal events that cause national house listings to drop. There’s the glut of public holidays in April, the cold period between autumn and spring, and finally, end-of-year holidays.
Those looking at homes for sale in their local markets may have seen decreases due to two out of the three reasons mentioned above, but there are also broader economic considerations as well. Real estate in Sydney, which is currently in high demand, has seen the number of listings fall by 11.2 per cent over April. Darwin on the other hand, which is turning into a buyers’ market, had an increase in stock of 2.2 per cent according to SQM Research.
More homes on the way
Whether the real estate options in your neck of the woods have dried up or are blooming, there could be more selection on the way in the coming months. The Housing Industry Association (HIA) reports that dwelling approvals hit another all-time high in March – 210,484 for the year.
“Strong activity in the high density segment helped propel dwelling approvals to unprecedented levels in March,” said Shane Garrett, senior HIA economist, in a 4 May statement.
“New home building continues to benefit from the exceptionally low level of interest rates, as well as strong population growth over recent years in the key home buyer age group.”
Mr Garrett noted that the housing sector has been keeping the domestic economy afloat in recent times, with multi-unit dwellings forming a large part of that influx in activity. However, it should be noted that while the national statistics are looking good, they are buoyed by some states that have experienced phenomenal results in the approvals department.
Real estate in Perth is set to benefit from an 18.9 per cent increase in approved dwellings in WA. Meanwhile South Australia jumped up 35.2 per cent and Tasmania took the cake with a 42.3 per cent positive movement in the number of homes approved for construction.
The HIA reports that Queensland also experienced a lift in approval numbers (8.1 per cent), while the other states declined to some degree – although none too severely.
For sellers, the next few months will be all about capitalising on lower competition, while for buyers it seems that smart choices and patience will be the order of the day if they are to keep prices at a reasonable level.