In case you missed it, The Sunday Age yesterday ran a great article on the epic housing supply glut that is affecting Melbourne where, according to SQM research, the number of homes for sale has hit a record high, around double 2008 levels:http://www.macrobusiness.com.au/2012/07 ... sing-doom/
As demand has fallen over the past year, the number of outer suburban homes with ”For Sale” signs has jumped by almost 40 per cent…http://www.theage.com.au/victoria/home- ... 21pkl.html
”We’re just not seeing any end in sight to this glut of new supply coming into the market,” said SQM Research managing director Louis Christopher. ”It seems obvious there is only one direction for prices. That’s a frightening possibility if you’re a property owner”…
”It’s like a ghost town in the new developments. Nothing has moved for the past three, four, five, six months,” said Hocking Stuart agent John Halkidis, who works in northern suburbs including Bundoora and Epping.
The tough market conditions are expected to deteriorate even further, with research showing developers are poised to release another 75,000 new home sites at 126 existing housing estates in the city’s growth areas.