‘Abnormal’ property listings rise a sign of possible investor exit

MSN Money 4 August 2015

http://www.msn.com/en-au/money/personalfinance/abnormal-property-listings-rise-a-sign-of-possible-investor-exit/ar-BBlmZMQ

An unseasonal, sharp rise in property listings in July may be an early sign that real estate boom centred on Sydney and Melbourne is nearing its peak.

SQM Research figures show that, nationally, the number of properties listed for sale rose 3.8 per cent in July compared to the previous month, and was up 4.2 per cent on the same month last year.

The biggest monthly rise amongst the capital cities came from Sydney, where listings jumped 18.5 per cent, although the number of properties for sale in Australia’s largest city remains below the levels in Melbourne, Brisbane and Perth.

The number of properties listed for sale in Sydney was up 6.1 per cent on the level seen in July last year.

On a monthly basis, listings also jumped 7.8 per cent in the red hot Melbourne real estate market.

SQM Research noted that the Sydney and Melbourne rises were “abnormal for July as sale listings are generally subdued this time of the year.”

The increase in properties listed for sale in the two cities is the largest recorded for the month of July since SQM’s listings data began in 2008.

SQM’s managing director Louis Christopher said the unseasonal, early jump in listings ahead of the traditional spring selling season may be a sign that Australia’s two booming property markets may be nearing the peak of their growth.

“I believe the results do represent an indication that the measures undertaken by APRA in slowing investor demand are now having an impact on the market,” he wrote in the research.

“At this stage it is too early to call the magnitude of the impact, however it is likely that the measures (which SQM still regards as moderate) will slow the rate of dwelling price inflation recorded, rather than create a price correction.”

On an annual basis, it was the struggling property markets of Darwin (34.8 per cent) and Perth (23.5 per cent) that had seen by far the biggest rise in listings.

Figures out yesterday from CoreLogic RP Data show those two resources-reliant centres showing price falls over the past year, as demand drops at the same time as more owners try and sell.