Property sales pass another key milestone towards recovery
The month of August saw 6,035 unconditional property sales across the country as reported by the Real Estate Institute. This represented a 16% increase as compared to August last year and continues to fuel a stronger property outlook as all of the 8 months of 2012 have seen year-on-year sales up between 14% and 37%.
The chart below tracks the annualised total of sales volumes and transaction value since 1993.
This total for the 12 months to August tips the annualised total of sales past the milestone of 70,000 sales. The last time the 12 month moving total sales was at this level was way back in May 2008.
The property market did witness a rebound in 2009 and edged very close to 70,000, with an annualised total sales of 69,629 in December 2009 before falling again down to the low point of April 2011 at 54,829. Since then the growth in sales has been consistent running a 17 month unfaltering trend to see an overall increase of 28% in total annualised sales top the new level of 70,065.
It is, as ever, important to recognise the difference between the current sales levels and those heady days of 2004 when sales were exceeding 120,000 on an annualised basis, equating to 10,000 sales a month - a long way removed from the current level of still just under 6,000 a month.