Australia's Property Market Overload: Unsold Housing Stock Hits Record High
The Australian property market is experiencing an unprecedented surge in unsold housing stock, with over 276,000 listings on the market - a 21.6% annual increase.
This has led to falling asking prices for buyers as vendors are forced to adjust their expectations. According to SQM Research director Louis Christopher, 'Spring has brought the usual lift in new listings, but that's not what's behind the 20 per cent annual rise in stock.'
In Sydney, despite fewer vendors listing than a year ago, total stock is up almost a fifth. Brisbane and Adelaide stood out with the highest increase in overall stock build-up of 43.5% and 39.5% respectively.
The Reserve Bank of Australia's (RBA) decision to hike the cash rate by another 25 basis points to a 15-year high of 4.6% is also putting pressure on homeowners. The Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella said 'Borrowers don't just absorb today's increase, they're still carrying the financial impact of February, March and May.'