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Fresh warning for home-sellers to ‘adjust their price expectations’

Australian homes. Image: Getty

Australians looking to sell their homes can expect to wait twice as long as they would have if they had sold at this time last year as the property market continues bottoming out.

In the three months to April 2019, the median time on market was 60 days, the latest figures from property research group, CoreLogic have revealed.

”[But] the typical selling time has risen significantly over recent months and is up from 35 days at the same time a year ago,” CoreLogic research analyst Cameron Kusher explained.

“The rapid rise in time on market is symptom of higher supply (advertised stock levels across the combined capitals are at their highest level for this time of the year since 2012) and less demand.”

He said extended time on the market is a clear indicator of a weaker market, and noted that the longer time to sell is a trend occurring most of Australia.

New South Wales

In Sydney, the average time to sell in 2019 was 62 days, compared to 31 days at this time last year.

For regional NSW, homes now take 76 days to sell, up from 50 days last year.

“As both housing markets have weakened, there has been an ongoing steady increase in days on market,” Kusher observed.

Victoria

Melbourne dwellings now take an average 43 days to sell, up from 27 days in April 2018.

And outside of Melbourne, properties now take 54 days to sell, an increase from the average 37 days last year.

“Although days on market fell over the past month in Melbourne, properties are taking longer to sell than in recent years while in regional Vic there has been a recent spike in days on market,” Kusher said.

Queensland

In the sunshine state capital, Brisbane, homes now take 60 days to sell, compared to 34 last year. Regional Queensland homes took an average 47 days to sell last year. This year, they take an average 77 days.

Kusher noted that this decline has been much gentler than that seen in Sydney and Melbourne, but that the “sharp spike” in time on market highlights how much more difficult it is for sellers to sell.

South Australia

As with Queensland, the increased time on market isn’t as notable as Melbourne and Sydney. Here, properties in Adelaide take 54 days to sell, up from 45 days at this time last year.

And in regional South Australia, homes are now taking an average 95 days to sell, only slightly above the 92 days needed last year.

Western Australia

Perth properties took 62 days to sell, compared to 48 days in the three months to April 2018. Outside of Perth, homes are now taking 76 days to sell, only slightly above the 73 days required in 2018.

“Despite the ongoing weak housing market conditions over recent years in Perth and regional WA the days on market figure has been fairly steady,” Kusher said.

“This would seem to suggest that Perth vendors are setting appropriate initial list prices or are willing to reduce prices to meet the market.”

Tasmania

In the capital of Australia’s most southern state, properties are now taking 32 days to sell - up from an incredible nine days in 2018.

Homes in regional Tasmania now take 58 days to sell, up from 38 days.

“As the housing market is expected to continue to slow over the coming months, days on market may continue to climb unless vendors adjust their price expectations appropriately,” Kusher warned.

Northern Territory

Darwin homes today take 77 days to sell, up from 67 days in 2018. Outside of Darwin, property sales are volatile with home-owners now needing 81 days to offload their property compared to 75 days.

Australian Capital Territory

The average time on market in Canberra has risen from 31 days a year ago to 52 days.

“Overall the data points to a longer period of negotiation before a sale,” Kusher said.

“This reflects the conditions of tougher finance and fewer buyers.

“In order to have the best chance of achieving a sale vendors should set realistic prices, maximise their marketing campaign to ensure their property stands out from the competition and be prepared to meet market expectations.”

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