Housing Turnover Reaches 12 Year High

CoreLogic estimates there were nearly 598,000 houses and unit sales across Australia over the year ending August 2021; the highest number of annual sales since 2004, and a 42 per cent increase on the annual number of sales over the previous 12-month period. Nationally, the number of dwellings over the past year was 31per cent above the decade average and 24per cent higher than the 20-year average.

Across the states, annual home sales are substantially higher than a year ago, with every state and territory, apart from Tasmania, recording a lift of more than 10% in year-on-year home sales. The smaller increase in sales across Tasmania, where advertised supply was tracking approximately 35% below average at the end of August, is probably more attributable to a lack of supply than a shortage of demand.

The largest year-on-year increase in annual home sales can be seen in the previously weaker markets of Western Australia and Northern Territory where the market is playing catch up. Year-on-year home sales have risen by 62% and 59% respectively, while Queensland has recorded a 54% lift in year-on-year sales.

Such a significant surge in housing demand may seem surprising at a time when overseas migration has stalled, however the substantial rise in home sales can be explained by a lift in domestic demand from previously low levels.

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