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Owners seem less willing to list their properties for sale despite the strong market conditions in Sydney and Melbourne, according the latest residential property data from CoreLogic.
CoreLogic head of research Tim Lawless said the strong growth conditions in Sydney and Melbourne have been supported by auction clearance rates that are now trending close to the highs recorded during mid-2015.
He also said that while listing numbers remain low in both cities, they have begun to trend higher – which is normal for this time of year.
“Higher listing numbers will provide a timely test of the housing market's strength and whether more stock will be matched with a higher rate of absorption,” Mr Lawless said.
Transaction numbers have also trended lower over the past year.
Over the three months to the end of August, CoreLogic estimates there have been 15 per cent fewer settled sales nationally compared with the same period one year prior.
The combined capitals have seen a sharper downturn in the number of home sales, down 17.1 per cent.
In the weakest markets, Perth and Darwin, transaction numbers have been trending lower since 2013 as housing demand has softened, with the number of dwelling sales also trending lower in cities where values are rising.
“The trend of fewer sales coinciding with values pushing higher is likely explained, at least partially, by low stock levels, particularly in Sydney and Melbourne, where listing numbers remain close to record lows. Other factors that are likely to be contributing to the slowdown in transaction numbers include tighter lending conditions, decreasing levels of affordability, which prevent some segments of the market from participating, and high transactional costs including stamp duty on purchase,” Mr Lawless said.
“Furthermore, the heightened level of new unit construction and off-the-plan sales is likely to be accounting for some understating of sales activity. Given off-the-plan unit sales are not counted until they settle, there will be some upwards revision in transaction numbers as the record number of units under construction, and selling off-the-plan, move through to settlement.”
[Related: ‘Tsunami of supply’ to hit housing markets]
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