Brisbane Decrease in Stock - What Does It Mean?

No evidence, purely anecdotal but hearing this from a large number of agents.

A lot of agents are telling me that they are struggling for listings. Some of the younger ones that have not been through a down turn (and normally have the leased v.expensive euro car to go with it) seem to be genuinely worried.

No issues with buyer volumes at all, just have decent stock to be able to sell them.

Anyone hearing something the same?

Not getting from agents on Gold Coast or Sunshine Coast (both taking off according to agents).

Not sure what it means for prices. You would imagine that if supply lower but demand the same then prices rise. But it is far too early to tell.

Thoughts?

 

They'll just have to work harder to get the listings. Getting the listings can be harder work than finding the buyers...

 

Agree with @Gockie . Gaining the list is usually the biggest sales effort of the agent. Can't comment on Brisbane or the Sunshine Coast, however there isn't a flood of supply on the Gold Coast. Whatever lists that is at around median is gone very, very quickly. I expect if there are still buyers around then it should augur well for Brisbane in a general sense. It hasn't had the momentum of Sydney or Melbourne in any way of form. It appears to have grown but nowhere near the same degree. It might just be a seasonal or periodical (short/medium term) hiatus

RPI, if any of these overleveraged young ones need to offload an ML 63 at below residual please let me know

 

Nope..there is a decent supply. Just that there is plentry of competition amongst real eastate agents.

 

I have seen a bit of an uptick in cold calls/emails/marketing material from agents lately looking for listings.

I choose to take it as earlt signs of properties selling faster so less stock on market, demand side the same if not rising so upward pressure on prices. Mind you I'm a permanent optimist and a fan of the "Brisbane looks good" thread!

 

my area (near wynnum) now has more and more listings. Went to some open homes last weekend and not much of a crowd. Rental listings are increasing as well and asking rents being dropped. There's also a flood of Units/Townhouse coming online as well everywhere and more being built and sold OTP.

reckon everyone's waiting for the double dissolution and the exciting elections to come around before selling/buying.

either that or the APRA changes and poor QLD economy are starting to show.

RPI : you could probably look at the total of brisbane listings and see if its up or down.
http://sqmresearch.com.au/pdf/Forth...astheCapitalCitywiththeHighestVacancyRate.pdf
shows brisbane vacancy rate is trending up for this first quarter this year from 2.1% last year to 2.6% last month making it better than only Perth and Darwin.

 

The uncertainty of an election seems to slow down the real estate industry pretty well everywhere in the world, yet like you said what do they think is going to change? The only hesitation I could somewhat understand is an investor concerned about the talk of negative gearing being abolished. With that said there has been talk of that for a long time with no action.

The UK has some serious financial deterrents to owning investment property and they recently got even worse. Let's hope Australia doesn't head in the same direction.

 

Yes I have heard this.
but to be honest it's hard for me to determine whether or not it's indicative of not many listings or simply agents are always going to want more listingsI imagine you can never have enough listings however I have noticed that there are a few agents that seem a bit more desperate about the situation

 

Perhaps those who were interested in selling are changing their minds and holding on to their properties another year or two.

This could be cold feet related to the Jul 2nd election, or fear of fierce competition from pending unit/TH oversupply coming online, or both (or other reasons!)

Perhaps also they believe that Brisbane is on the rise (or so they've heard, anyway) so they are holding out to sell until momentum in price rises appears. I'm a believer in Brisbane's market rising in coming years, but any would-be sellers naively waiting for a boom the size of Sydney's 2013-15, or Melbourne's 2014-16 will likely be disappointed

 

Sometimes it's the calm before the storm.
Found that at the South Coast, listings were down. Agents were door knocking trying to get listings. You would think prices would be going up then. A bit of delay for some reason, then sure enough...

 

Only time will tell. Too many wild cards at play at the moment. There is no crystal ball!

 

that's probably what's happening here in Brisbane. Apartment prices are already starting to tank, wont be long before those "follow the herd investors" who overleveraged on OTPs get hit and have to sell their houses as well.

I am seeing some real rent reductions of around 5% in my popular SEQ suburb already.

 

Why the grave dig?

 

The South Coast went up, not down by the way.

 

Buy the right stock, right price. Its all good. Good location/demand stock by multiple demographics will still be good demand stock when the economics looks scary. Most often the people who need to worry are the ones who pay too much for crap with minimal demand and excess supply.

 

You hit the nail on the head.

 

I know two agents who came up to the GC last year, who have now returned to sydney this year. There's two less who won't compete for stock