Australian property vendors have been raising their asking prices for the first two months of the year, a sure sign that property prices are also set to rise, according to SQM Research.
In announcing its new Weekly Vendor Sentiment Index, SQM Research notes that asking prices have risen an average of 0.4% for units and 1.5% for houses since the beginning of January.
“A rise in asking prices suggests home sellers are becoming more confident of market conditions and that buyers are bidding more aggressively for real estate that is been offered at fair market value,” says SQM director Louis Christopher.
SQM’s new vendor sentiment index points out that a rise in vendor price expectations correlates with a corresponding rise in property prices.Click to enlarge
SQM notes that thus far there has been a been 0.97% correlation between the vendor sentiment index and ABS property prices.
The sentiment index guages the sentiments of vendors of all houses, three-bedroom houses, all units and two-bedroom units. SQM plans to break down the data on a national, capital city, regional and postcode basis.Click to enlarge