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There are many key indicators that need to be assessed when purchasing an investment property. One of them being the change in the number of properties for sale over a period of time. When a market is changing from a buyers market to a seller's market or vice versa, the number of properties being put up for sale will either increase or decrease.
When more homes are on the market, it’s a buyers market. There will be a lot more choice for people wanting to purchase, meaning they have options and can negotiate a fair or reduced price.
When there is a limited number of homes for sale with lots of people looking, creating competition and forcing prices up.
The latest data released by CoreLogic is further confirmation of the changing Australian markets. Let us take a look at the percentage increase and decrease in the number of total property listings over the past 12 months per capital city.
The total number of listings in Sydney has increased by 16.2%. We are seeing this market shift from a seller's market to a buyers market. This is further evidenced by cooling capital gains and auction clearance rates reaching sub 70% consistently.
Property listings in the Melbourne market over the past 12 months have dropped by 2%, indicating the market will continue to remain robust. Especially compared with other indicators like high population growth and a stable state economy. Contrary to Sydney, auction clearance rates remain comfortably in the 70's and 80's.
Brisbane, Adelaide and Canberra listings have increased by 3.9%, 6.4% and 1.2%, respectively, which is in line with our forecast of continued moderate capital growth in the detached housing market for those cities. Hobart continues the theme with standout property metrics, as reported the southern capital is now the best performing capital city, with 12 months all dwelling capital gains of 14.3%. This is further evidenced by a staggering 12-month drop in property listings of 35.5%. This capital is firmly a seller's market.
Another positive sign that Perth is approaching the bottom of the market is total listings in the past 12-months have dropped by 13.3%. The Darwin market has also seen a decrease in listings of 2.9%. Both markets that we are excited to monitor over the next 12 - 24 months.
Milk Chocolate was founded seven years ago by Richie Ragel and Michael Cleary, to purchase residential and commercial property in Australia on behalf of our clients, looking for a home or investment property. To see how we can help you get in touch here.
Source: CoreLogic / Australian Bureau of Statistics
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