Dwelling sales continue to surge
By Eliza Owen, Head of Research Australia at CoreLogic
Dwelling sales continue to surge across Australia against low listings levels. In the three months to July, CoreLogic estimates there were around 171,100 sales. This is 53.4% higher than what has typically been seen this time of year for the previous five years. In the same period, there were just 121,200 newly advertised properties for sale in the three months to July.
This has taken the ‘sales to new listings ratio’ to recent highs nationally, at 1.4 over the three months to July. The sales to new listings ratio were calculated by dividing the number of sales that have taken place over a given period by the number of new listings added to the market over the same time. For the past decade, the ratio has averaged 0.9, suggesting for each listing added to the market, there was just under one transaction that took place.
When the ratio is 1, it implies buyer demand and advertised supply is balanced. A sales to new listings ratio of 1.4 suggests strong selling conditions, as there is more than one transaction taking place for every new unit of supply in the same period. The sales to new listings ratio have averaged above 1 since June 2020.
Each of the capital city markets currently has a sales to new listings ratio of greater than 1, ranging from 2.0 in Adelaide to 1.1 across Darwin. Capital cities with imposed lockdown restrictions through July saw a particularly strong uplift in the ratio, which may be a result of a disproportionate number of vendors postponing the start of a selling campaign amid lockdowns.