Officially a buyer’s market

A growing stockpile of unsold homes to choose from, dropping property prices, weak auction clearance rates, and a series of interest rate cuts have combined to create the perfect conditions for home buyers.

While there were some small increases in property values during the past quarter, they were only modest gains and not enough to turn the market around reports the latest Commonwealth Bank Home Buyer Index.

The CBA Buyer Index was prepared together with RP Data for the May quarter and showed that while Melbourne’s housing marketing is softening, Brisbane’s market is displaying “extreme” buying conditions.

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According to RP Data there are now more than 300,000 properties listed for sale in Australia and this oversupply of available homes is resulting in many areas becoming buyer’s markets.

The report showed that Queensland regions accounted for five of the top 10 buyer’s markets in Australia.

"It really does suggest there are a lot of properties that are for sale at the moment,'' said Tim Lawless, RP Data national research director.

"Stock levels remain high across each of the capital cities so prospective buyers have a good range of housing options to choose from.''

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There are a few balanced markets, like Canberra and Darwin, where supply is not overwhelmingly outstripping demand.

The Home Buyer Index is calculated by comparing the number of properties available for sale with demand for home loans through the Commonwealth Bank.

Top 10 buyer's markets:

1. Southern (TAS)
2. West Moreton (QLD)
3. Northern (TAS)
4. Sunshine Coast (QLD)
5. Gold Coast (QLD)
6. Wide Bay-Burnett (QLD)
7. Mersey-Lyell (TAS)
8. Eyre (SA)
9. Far North (QLD)
10. Richmond-Tweed (NSW)