PHOTO: JOHN MCGRATH
The number of homes for sale across Australia is at a 10-year low, with new listings increasing only marginally in the month of September and overall stock for sale actually falling. This is highly unusual for the first month of Spring, which is traditionally our busiest selling season.
Overall stock for sale nationwide in September totalled 289,566 homes, according to SQM Research. That’s the lowest volume of any month in 2020. It’s even lower than the Christmas holiday months of December and January. This time last year, 23,200 more homes were on the market.
This low supply is due to a growing absorption rate, which means homes are selling faster than they can be replaced by new listings; as well as the impact of the second wave lockdown in Melbourne which has delayed the start of their Spring season altogether.
We expect a spike in listings now that private inspections and outdoor auctions are allowed in Melbourne again. This past Saturday, 309 homes were scheduled for auction, up 31.5% on the previous Saturday when restrictions were still in place and only online auctions were allowed.
Putting Melbourne aside though, comparatively low overall stock for sale is a common theme across all capital cities right now and it’s a big factor in keeping prices stable.
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