Despite the widespread industry belief that the residential housing market is on shaky ground, the release of internal sales data has prompted Ray White to conclude the market is much more stable than first thought.
Ray White's release of internal sales data shows improvements across all states. Overall stock levels have increased by 26% across Australia and New Zealand for September/October 2005 compared to the same period last year.
Sales turnover has also increased significantly this spring, with the Australian Ray White network experiencing a 25% increase in sales turnover for the months of September and October.
Ray White Deputy Chairman, Mr Sam White, said the current housing market's core feature is stability.
"Our sales data show firmness in both transaction numbers and dollar volume, so there is nothing to indicate that we will be seeing price decreases in 2006," Mr White explained.
"That said, the market will still be reactive to interest rates. However, any minor movement in rates will not have a major influence on the housing market," he added.
Queensland experienced an 18% increase in sales turnover this September/October on the same period last year, while stock levels were up 30% according to Ray White. October saw the highest dollar volume of sales turnover since March 2004 and indications for November are looking strong.
With continued growth in the office network, New South Wales had a dramatic lift in sales turnover, with a 42% increase year-on-year during September/October. With this increase only partially attributable to internal growth, the increase is indicative of Sydney's tendency to lead trends.
Listings increased by 29%, while the number of sales for the same period was up by 14.9%.
Victoria experienced similar growth to Queensland, with sales turnover increasing by 16%, while stock levels also lifted by 16% and the number of sales increased by 13.8%.
Further behind in the property cycle, South Australia produced only 1% growth in sales turnover for the period of September/October - a similar situation to that of New South Wales earlier in the year. With listing levels up by 19.6% this spring, it is expected that increases comparable to that of Victoria and Queensland will be seen early next year.
Fuelled by a resources boom, Western Australia experienced a record month for sales turnover in October. Overall, sales turnover increased by 32% for September/October, however sales listings were down for the same period, indicative of the tight market being experienced. High demand is likely to continue well in 2006.
