Sydney leads national decline in stock on market in January: SQM

Sydney registered the biggest monthly decline in property listings in January, with peak summer stock levels falling 15.9% from 34,000 to 29,000, according the latest figures compiled by SQM Research. 

All cities experienced the typically expected monthly drop in sales stock, with Adelaide experiencing the most marginal decline, falling by 0.3% month-on-month. 

Nationally property listings fell by 4.3% to just below 369,000, with SQM managing director Louis Christopher telling Property Observer the market volumes have most likely peaked. 

For the year to January listing are up 13.5% led by a 33.3% increase in Melbourne listings.

Christopher says seasonality is the biggest factor in the January decrease, though the drop was bigger than expected.

Source: SQM Research

“It does convince one that stock levels have peaked,” Christopher says.

“At the start of 2009, buyers quickly took out the low-hanging fruit – the same thing is happening now,” he says.

Christopher says February data will be crucial.

“If there is no pick-up in listings or a just a marginal increase, then it will indicate that something cyclical is happening.

“Then it will be clear to us there is something else is going on in the market, such as listings being absorbed by an increase in buyer activity,” he says.

Christopher says Sydney vendors are mos likely withdrawing their listings and preparing fresh marketing campaigns ahead of the February pick-up.

Christopher says not much should be read into the 8.3% month-on-month drop in Melbourne listings given how much they are up year-on-year.

According to SQM, Hobart recorded the largest yearly increase, climbing 40.9% since the corresponding period of the previous year (January 2011) and coming to a total of 4,558. 

Darwin recorded the largest yearly decrease, falling by 11.7% since the corresponding period of the previous year (January 2011) and coming to a total of 1,331.