Housing stock on market is falling, but still has some way to go before reaching the levels it saw last year.
New figures from SQM Research show residential listings for June fell 2% compared to May. Every capital city apart from Darwin saw a month-on-month decline, with Hobart experiencing the largest decline at 6%. The result represents the second consecutive month of stock declines.
While property listings numbers have dropped away in recent months, they are still higher than same time last year. Housing stock nationally was up 23% compared to June 2010. Melbourne has recorded the highest year-on-year increase in number of properties on the market, with stock levels 47% above their mark last year.
Experts believe that the market is very close to bottoming out, with the next move in direction being up.
While it may be too early yet to call a bottom in the current housing downturn , we are certainly closer to it today than we were 12 months ago. Any recovery will be slow and we could take some years to catch up to where we were before prices commenced their decline.
The direction of the housing market in the months ahead will be largely dependent on the interest rate environment and any government intervention in the marketplace. Naturally the Australia home loan market will follow the trend-lines of the property market.