The listing of properties at unachievable prices is adding to the property market’s already swollen stock levels, according to RE/MAX WA managing director Geoff Baldwin.
Residential property listings are up by close to 50 per cent compared to 2010, figures from SQM Research have revealed.
Mr Baldwin said real estate agents accepting vendors’ listings at prices which simply cannot be achieved in the current market is resulting in a false oversupply and making it harder for sellers who are realistic about the market.
“Currently there are about 18,000 properties for sale in Western Australia however, of these, as little as 5,000 to 6,000 are priced within three per cent of their likely selling price and buyers are forced to sieve through this maze before they decipher what is and is not good value.
“Many of my fellow agents and salespeople complain about the market being oversupplied and slow but at the same time insist on accepting unsaleable stock that they should be walking away from and advising the owner to wait until the market picks up rather than chasing rainbows.”
Mr Baldwin said incorrectly priced properties would linger on the market.
“The harsh truth is, if a property isn’t currently priced spot on the mark it will just sit and become stale and the longer it sits the staler it becomes and the less likely it will sell at all, let alone at a reasonable price.
“Agents need to take responsibility, stop taking on overpriced stock, reduce the amount of listings for sale and the result will be more demand for less product and very quickly, a more even and competitive market for buyers and sellers,” Mr Baldwin said.