Property listings plummet in December

Listings plunge

Although there is some old stock on the market not selling, total property listings dropped from 241,701 to 228,415 in December, reflecting few forced sales and a decline in distressed listings.

It's not unusual to see a decline in December, but overall stock levels are much tighter than they have been in many recent years (in 2011 the total was over 370,000, for example). 

The drop was mainly driven by a -15.3 per cent decline in Sydney inventory, with all capital cities except for Hobart recording a monthly decline. 

At the sub-regional level, stock levels are generally tighter in Sydney's eastern suburbs, inner west, and lower north shore, but are now increasing in the Blue Mountains and Wollongong, following a period of chronic tightness through the pandemic.

Stock levels in Hobart have rebounded to a total of 2,293 listings, but do bear in mind this year-on-year surge is coming from extremely low levels over recent years (so in that context, not much of a surprise). 

Over the month SQM recorded an increase of +2.8 per cent in asking prices, going somewhat against the prevailing narrative of a plunging market. 

Indeed, capital city asking prices are as high as they have ever been, suggesting that while there are pockets of significant weakness, some markets are faring much better than others. 

Source: SQM Research

How far the downturn cycle runs for largely depends on monetary policy and the regulatory approach to lending standards from here. 

SQM's media release can be found here.

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All of the manufacturing ISM components point to a US slowdown...and take a look at prices paid!

Source: Bloomberg

Inflation looks set to go into freefall in 2023.

The ISM gauge appears to be pointing to year-on-year inflation going negative this year, in fact.

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It was 15 degrees in London yesterday, with a another fortnight of the same forecast.

In Europe electricity and gas prices have plunged all the way back down to pre-invasion levels, while gas futures are at the lowest level since 2021 on the milder weather.

Crude oil also fell 5 per cent overnight.