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05. Apr
2012
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Huge jump in houses for sale down under
Further evidence of the growing pressure on household balance sheets down under is the surge in homes for sale so far this year. According to SQM Research Pty, the number of houses placed on the market rose by 5.4% in March to 388K, with Melbourne recording the biggest jump of nearly 12%. SQM remarked that the number of properties on the market was ‘elevated’, such that it was difficult to see how the already depressed market could recover. In 2011, Australian house prices fell by more than 5%, although RP Data suggests that prices stabilised in the first quarter.
If supply remains this high over coming months, we can expect further price falls in the second quarter. This would add further weight to the already growing case for additional easing from the RBA.
