PHOTO: More dwellings are being sold than listed across Australia new CoreLogic data shows.
Dwelling sales continue to surge across Australia against low listings levels, according to new CoreLogic data.
In the three months to July, CoreLogic estimated there were around 171,100 dwelling sales in Australia.
This is 53.4 per cent 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 is calculated by dividing the number of dwelling 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 market, there was just under one transaction that took place.
When the ratio is one, 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.
The sales-to-new-listings ratio has averaged above one since June 2020.
Each of the capital city markets currently has a sales-to-new listings ratio of greater than one, ranging from two 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.
Multiple factors can explain the surge in sales relative to low listings levels from mid-2020.
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