The current media headlines for the Sydney and Melbourne housing markets seem to all revolve around low auction clearance rates, but this is an extremely misleading way to look at the strength of the selling market.
The spring selling season has seen a rise in the number of newly listed properties added to the market, however there hasn’t been a commensurate lift in transactions resulting in a rise of housing supply.
With auction clearance rates not representing the entire property picture, RP Data / Core Logic calculated the interaction of supply and demand based on how quickly the existing housing stock levels would be cleared based on current rates of demand.
The above graphs highlight the current months of supply figure across each capital city and the figure over the corresponding week for each of the past 8 years.
As can be seen from the table, Sydney remains the most under supplied capital city in Australia. With the current rate of demand, it would take 2.4 months to clear current listings.
Melbourne isn’t too far behind with the 4th lowest months of supply of all capital cities. It currently has 3.4 months of supply for sales, which is the same figure as it had over each of the past 2 years.
Perth seems to be lagging behind, with 6.8 months of supply for sale in the western capital.
Based on these figures it’s hard to see prices reducing in Sydney or Melbourne any time soon.
If you would like to find out more about the current selling market in the Bacchus Marsh region then don’t hesitate to get in touch with one of the team at Arbee Real Estate.