Australians have officially gone off the property market – and it’s heating up competition between sellers who are competing for the attention of fewer buyers on the market.
It’s also forcing sellers to sell properties at discounted prices, latest figures from CoreLogic reveal.
In fact, the average Aussie property is being sold for 5.7 per cent less than the original listing price, a low not seen in more than six years.
“The widening gap between seller and buyer price expectations reflects the fact there are fewer active buyers in the market and as a result vendors that are serious about selling may need to make some sizeable price adjustments in order to sell,” said CoreLogic research analyst Cameron Kusher.
“With housing market conditions continuing to deteriorate, buyers thin on the ground and a high volume of stock listed for sale, it is reasonable to expect that over the coming months vendor discounting may increase further.”
In a market where there are far fewer buyers than there have been over the last few years, sellers should be willing to adjust their prices, Kusher advised.
Here’s how much the median discount price is in every capital city and regional market:
Combined capital cities
The median selling discount for all the capital cities was -6.3 per cent as of January 2019, a level that mirrors the GFC, according to CoreLogic.
Just a year ago, it was -4.7 per cent, signifying how steeply housing market conditions have fallen in just twelve months.
Combined regional markets
Discounting levels for regional markets across Australia are at -5.2 per cent, compared to -4.5 per cent a year ago.
At -7.5 per cent, discounts in NSW’s capital city Sydney are more significant now than they were in the GFC. The last time housing conditions were so bad was February 2006.
Meanwhile, vendor discounting in regional NSW has fallen from -4 per cent to -4.9 per cent, with further to go, according to CoreLogic.
In just twelve months, vendor discounting in Melbourne has deteriorated nearly double, from -3.6 per cent to its current level of -7 per cent.
Vendor discounting in regional Victoria has dropped from -3.8 per cent to -4.3 per cent across a year, but despite the drop, these levels are healthier than they’ve been in the past few years.
In Brisbane, vendor discounting levels were recorded at -5.3 per cent as of January 2019 compared to -4.4 per cent the same time a year ago. This is the weakest level since February 2013.
Discounting levels across regional Queensland are also at the weakest they’ve been since February 2013, falling from -5.3 per cent in January 2018 to -6.7 per cent January this year.
In Adelaide, discounting levels have fallen from -4.8 per cent a year ago to -5.3 per cent.
Across regional South Australia, vendor discounting has worsened across 12 months to -6.8 per cent from -6 per cent as recorded in January last year.
Bucking the trend, discounting levels in Western Australia’s capital city of Perth have slightly improved at -6.4 per cent currently, up from -6.5 per cent twelve years prior.
The regional property market in this state hasn’t been able to say the same as its capital city, with discounting levels at -8.2 per cent from -7.7 per cent last year.
Discounting levels in the capital city of Hobart have nudged lower, weakening to the current level of -4.2 per cent from -3.8 per cent as recorded in January 2018.
In regional Tasmania, discounting levels improved very slightly across 12 months and are currently at -4.4 per cent compared to -4.6 per cent a year ago.
Vendor discounting metrics are volatile in Darwin due to low sales volumes. The vendor discount is -8.2 per cent as of January 2019, compared to -6.5 per cent 12 months prior.
Vendor discounting in regional Northern Territory has worsened slightly to -4.5 per cent, down from -4.2 per cent a year ago.
While CoreLogic has described vendor discounting in the city of Canberra as “minimal”, a slowdown in value growth has seen vendor discounting fall from -2.3 per cent to -2.9 per cent currently.
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