Paul Wrigley from Ray White Toronto has been experiencing a shortage of listings and a high volume of sales over the last few months
RP Data’s latest article “Listings Eclipse GFC Levels” dated 3 December 2010 says there is an increase in listings over recent months and on a national basis, total listings are currently at their highest levels since the beginning of 2007.
Ray White Toronto are selling a high volume of properties and they are in need of more houses to sell in Toronto, Rathmines, Wangi Wangi and the surrounding areas.
RP Data’s latest Article – Listings eclipse GFC levels
Through spring the number of properties advertised for sale has been mounting as sales volumes fall and buyers are spoilt for choice.
The number of properties being advertised for sale nationally has risen sharply during the spring selling season of this year and the current volume of stock on the market is higher than those levels recorded during the depths of the GFC.
Typically as the spring season arrives there is a ramp up in listings. An analysis undertaken in an earlier Property Pulse detailed that over the past five years spring has recorded the greatest number of listings whilst autumn has actually been the busiest season for property sales. During this spring, the number of properties available for sale has risen sharply at a time when housing finance volumes have been trending lower since September of last year and property value growth has been flat since June of this year. The result of these conditions have been that at a time when fewer people have been actively looking to buy properties, a substantial amount of new stock has entered the market. Ideally, these vendors should have listed their properties earlier in the year when property values were still increasing and buyers were more active rather than waiting for spring.
Since the last week of August 2010, the total number of listings nationally has increased by 16.5%, in the capital city market listings have climbed 21.9% higher.
On a national basis, total listings are currently at their highest levels since the beginning of 2007. Also of interest is the quantity of stock being advertised for sale during the last month: 126,858 or approximately 51% of listings are within capital cities whilst the remainder lie outside these regions.
As we draw closer to the Christmas/New Year period many vendors have historically chosen not to advertise their property during the festive season. It may be the case this year that many vendors will choose simply to keep their home off the market until market conditions improve.
The real test for the property market will be around February of next year. Last time listings mounted to similar levels as they are currently the number of properties advertised for sale did not return to the pre Christmas levels. During the other two post Christmas periods detailed the volume of listings rapidly returned to pre Christmas levels in February. Should listings return to current levels it will indicate that there are many vendors who, for one reason or another, are willing to brave the slow market conditions and press ahead with the sale of their home. If listing sdon’t return to their current levels around February it probably means that many vendors have reassessed their position and preferred to hold off selling until conditions improve Overall, listings data during the early part of 2011 will provide a very timely indicator and significant insight into the overall health of Australian residential property market.