By Sasha Karen, Editor of Real Estate Business
Days on market in Australia’s largest markets are on the increase, while dwelling values continue to fall, according to the latest Property Pulse by CoreLogic.
Using days on market as a metric to determine how fast property can sell by private treaty in an area, as of December 2017, the latest CoreLogic data shows that properties took 45 days to sell nationwide and 40 days in a capital city.
These figures, the Property Pulse states, have been holding steady over the last few months, yet is higher compared to December 2016, which saw 44 days nationwide and 37 days for capital cities.
Across each of the capital cities, the Property Pulse has found that there were significant changes in the days to market:
The Property Pulse notes that, for the most part, these figures are only expected to rise higher.
“With dwelling values now falling in Sydney and slowing across many cities, it is reasonable to expect that, over the coming 12 months, the number of days it takes to sell a property will trend higher,” the Property Pulse states.
“In particular, this is likely to occur in Sydney (where values are already falling) and Melbourne, given that both cities have experienced rapid rates of sale and strong growth in dwelling values over recent years.
“Vendors in those cities where market conditions are softening will need to be realistic about their pricing expectations; as properties take longer to sell, buyers will be more inclined to negotiate on asking prices and vendors may face higher competition from other properties listed for sale as inventory levels rise.”
Other markets with housing value falls, with Perth being an example, are expected to have their falls dampened due to declining days to market numbers.