Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Huge fan of your work. Very impressive!' - Scott Pape, The Barefoot Investor, Australia's #1 bestseller.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of the finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts...most comprehensive analyst I follow in Oz' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

Monday, 25 May 2015

Sydney stock on market free-fallin'...

Supply and demand

It sounds overtly simplistic, but one of the major reasons that Sydney dwelling prices are rising and will continue to do so for the foreseeable future is that...well, there are more buyers than sellers.

Obvious really, innit?

It's a point I touched on briefly in my article here on Business Insider, which, by the way, is still the #1 trending article over at "BI".

Kindly please feel free to click on the link yourself...

Sydney stock droops further

Cameron Kusher of CoreLogic-RP Data tweeted his latest stock listings figures this morning.

It will come as no surprise to anyone who is active or looking to buy in the Sydney market right now to hear that stock on market has plummeted.

Total listings in Sydney declined to just 17,097, an enormous 22.3 per cent year-on-year decline.

No wonder everything priced at $1.5 million or under is selling so fast with there being so little stock on the market.


On the other hand, stock levels are rising sharply in Perth and Darwin, where the polar opposite dynamic is unfolding.

Market share of stock

As a share of total capital city listings Sydney stock has withered to a paltry 17 per cent share.


Yikes.

Compare this with the level of mortgages written as I have shown in my chart packs here previously, whereby New South Wales has consistently accounted for an enormous share of the market by volume over the past year.

In March 2015 more than 35 per cent of owner-occupier mortgages by volume ($6.5 billion) were written in the Premier State.

Meanwhile the $5.9 billion of investor loans was all but double the level of any other state, with Victoria's $2.97 billion paling into insignificance by comparison.

Sydneysiders - pretty please. with sugar on top - we need more listings.

---

The most interesting releases this week will be the preliminary Construction Work Done figures for Q1 2015, and the all important capex release for the same period.

Stay 'chooned'...