Home turnover hit by property shortage, end of the mining boom

A shortage of properties for sale, and the end of the mining boom, is weighing on housing turnover, says CoreLogic.

A lack of turnover was pinned largely on the mining regions.

A shortage of properties coming onto the market – in part tied to the end of the mining boom – could be skewing house price data, property analytics group CoreLogic has said.

The latest analysis found 4.9 per cent of dwelling stock was shifted nationally over the 12 months to June, meaning it would take an average 20.5 years for national housing stock to fully turn over.

CoreLogic property market analyst Cameron Kusher said median price measurements may not prove a reliable source for tracking value movements given so little housing stock moves in a given year.

A lack of turnover was pinned largely on the mining regions, where few properties were sold due largely to weak demand.

“These areas have been characterised as having plenty of properties for sale but few people actively looking to buy,” Mr Kusher said.

“As a result, in some of these regions only a small overall proportion of housing stock has actually transacted.”

The figures also pointed to a revival in the ‘lifestyle’ markets along the coast in a sign many Australians may again be adding a holiday home to their portfolio after a GFC-induced lull.

“The increased level of turnover in lifestyle markets indicates that the popularity of purchases in these markets has returned after many years in the doldrums,” Mr Kusher said.

“We’re anticipating that turnover will remain low in mining towns due to a lack of willing buyers. On the other hand, new housing areas and lifestyle markets are expected to continue to see relatively high levels of turnover throughout the coming year.”