At its core real estate is all about supply and demand.
Three tables this week.
Table 1 covers the Australian market, and it shows that detached house supplies are on the increase, when compared to current sale volumes.
In contrast, attached dwelling supplies – across the country as a whole – are on the decline.
In both cases – for detached houses and attached dwellings – the current level of supply is below the historic average.
If this continues into 2023 – and I think it will – this helps place a floor under dwelling values.
And given the tight attached dwelling supplies – which are mostly apartments – we might even see the reversal of this classic New Yorker cartoon.
Table 2 shows the same information as table 1 but this time detached houses by capital city.
Detached housing supplies are increasing in Sydney, Perth, Hobart and Canberra. They are steady in Melbourne and Brisbane and falling in Adelaide and Darwin.
Table 3 shows the same information as table 2 but on this occasion attached dwellings by capital city.
Attached dwelling supplies are increasing in Sydney and Hobart. They are steady in Melbourne and Canberra. They are falling in Brisbane, Adelaide, Perth and Darwin.
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