Housing supply on the rise across Australia
After months of high housing demand, new analysis shows supply is outstripping demand in some cities.
Analysis by CoreLogic has revealed that there is currently 4.4 months worth of housing supply across Australia’s capital cities. The analysis examined the number of unique properties for sale compared to the number of transactions in the market to provide a picture of how long it should take to clear stock.
CoreLogic researcher Cameron Kusher said current levels of housing supply are higher at this point in the year than in any year since 2012. He added that the analysis did not include off-the-plan housing stock.
“The increase in months of supply is largely due to the slowing rate of transaction activity rather than a spike in properties available for sale, indicating demand has diminished relative to advertised supply levels which are pushing the figure higher,” Kusher said.
Canberra had the least available housing stock, at 2.6 months of supply. Perth had the highest at 8.3 months, though Kusher said the number was down on the 8.7 months of supply at the same time last year.
Sydney, which Kusher said had consistently low levels of supply, had three months of established housing supply, the highest for this time of year since 2012. Melbourne had 4.2 months of supply, and supply levels in the city were also at their highest for this time of year in five years.
“Based on supply figures, it seems that the supply of stock for sale relative to demand is increasing in Sydney, Melbourne and Brisbane,” Kusher said.