Property supply catching up with demand

Property supply catching up with demand

by 0 comments

Australia’s property market has remained tilted in favour of sellers for the 10th straight quarter – but the balance is shifting.

LJ Hooker reported that its buyer/seller index pointed towards sellers in the December 2014 quarter, as it has since the September 2012 quarter.

However, the balance shifted towards buyers, with an eight per cent increase in sales surpassed by a 13 per cent jump in listings.

Despite the strong growth in listings, supply still hasn’t caught up with demand, according to LJ Hooker.

The state-by-state breakdown gives a more nuanced view of the property market.

Residents of NSW, Victoria, Queensland, South Australia and the Northern Territory are living in a seller's market.

Western Australia and the ACT are a buyer's market, while Tasmania is in balance.

LJ Hooker’s analysis of property and mortgage statistics suggests the market should move closer to balance in the next quarter – although an interest rate cut might change things.

“If the Reserve Bank of Australia cuts rates, as most economists forecast, buyer demand will lift and the LJ Hooker buyer/seller index will move back strongly in favour of sellers,” it said.

“Stability of interest rates will see demand remain consistent and slowly see the index swing back towards a balanced market as new listings rise and lower economic growth impacts demand.”

[Related: Melbourne overtaken as Australia’s number two market]

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Marnie Seinor on structure, database DNA and connecting with her local community

There’s no such thing as an “off switch” in real estate – so says McGrath agent Marnie Seinor, who came in at number 78 in this year...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Depends on the group
Do you have an industry update?