IBTimes.com

There was 30 per cent more stock available in the Australian property market during May 2011 than a year previous, data from SQM Research has revealed.

On average, the number of properties available to purchase increased 29.7 per cent year-on-year to May.

However, in some cities the rate was even higher. Melbourne led the way, with a year-on-year increase in stock available of 49.6 per cent.

SQM Research chief Louis Christopher said that this was a huge rise.

"Year-on-year, we are still seeing an extensive increase - comparatively speaking, the amount of stock on market is still on the rise," he added.

Mr Christopher forecast that the high level of stock currently available is likely to have an impact on the price of homes in the country.

"We've always said the decline on house prices will be mid to high single digits, and we still hold to that because there is still weakness in demand side, but what this means is that if listings do peak, we will unlikely see falls in the capital cities in the double digits," he confirmed.