A sharp rise in online residential property listings, which surged nationally in July by 22 per cent year-on-year, is likely to place more pressure on property prices, SQM Research managing director Louis Christopher said.
“Unless there is a flash interest rate cut by October, house prices will almost certainly head south from here,” Mr Christopher said.
“This latest rise in stock levels does not bode well for spring when seasonally, tens of thousands of new listings come on to the market.”
Figures released by SQM Research revealed that residential property listings for the month of July 2011 rose by 13,476 from June to 377,315 nationally, an increase of 22 per cent when compared to July 2010.
The result was four per cent higher than June listing numbers.
On a year-on-year basis, Melbourne recorded the highest rise with 45 per cent more online listings than July 2010. This was followed by rises in all the capital cities, led by Hobart with a 31 per cent jump, then Adelaide with a 30 per cent increase, while Darwin was up 26 per cent, Canberra 23 per cent, Perth 20 per cent, Sydney 18 per cent and Brisbane 16 per cent.
Brisbane and Melbourne experienced the largest month-on-month rise, with stock on market increasing six per cent, while Sydney and Perth had an uptick of three per cent. Adelaide saw a two per cent rise in listings from June, while Canberra was up five per cent and Hobart saw no change. Listings in Darwin fell by one per cent.
Mr Christopher said while the property market wouldn't collapse, "buyers are largely going to be in the commanding position when it comes to negotiations this spring."