A rise in the days on market across the country allows for buyers to take their time and go through negotiations at their own leisure, new analysis has revealed.
According to CoreLogic research analyst Cameron Kusher, softening markets remove buyer agency and as such stock remains on the market for a longer period of time, which is what is occurring in the current market.
Looking at the last three months to April 2019, the median days on market to sell a property was at 60 days, almost double from this time period last year of 35 days.
“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 (capital city settled sales are down 16 per cent year-on-year),” Mr Kusher said.
“Overall, the data points to a longer period of negotiation before a sale. This reflects the conditions of tougher finance and fewer buyers.
“In order to have the best chance of achieving a sale, [the vendor] should set realistic prices, maximise their marketing campaign to ensure their property stands out from the competition and be prepared to meet market expectations.”
Mr Kusher’s analysis took a look at each state and territory around the country:
In Sydney, properties take 62 days to sell as of the last three months to April 2019, while regional NSW takes 76 days, both above the 31 and 50 days, respectively, during this time last year.
Melbourne’s days on market nearly doubled, sitting at 43 days in the last three months to April 2019 compared to 27 days this time last year. Regional Victoria also increased, albeit to a lesser extent, going from 54 days from 37 a year ago.
Brisbane property has taken 60 days to sell over the last three months, compared to 34 days this time last year, while regional Queensland properties have ballooned from 47 days a year ago to 77 in the last three months to April 2019.
“Although values have declined over the past year in Brisbane and regional Queensland, it has been a much more moderate decline than in Sydney and Melbourne,” Mr Kusher said.
“Despite this fact, there has been a sharp spike in days on market highlighting that selling conditions have become much tougher despite values having only fallen moderately.”
Days on market in South Australia has not moved too much, currently taking 54 days in Adelaide and 95 days in regional South Australia for the last three months to April 2019, compared to 45 and 92 days this time last year.
Properties in Western Australia have also seen their days on market increase over the last year.properties saw their times increase by nearly half, sitting at 62 days for the last three months to April 2019, compared to 48 days this time last year, while regional WA properties are at 76 days, just above a year ago’s 73 days.
“Despite the ongoing weak housing market conditions over recent years in Perth and regional WA, the days on market figure has been fairly steady. This would seem to suggest that Perth vendors are setting appropriate initial list prices or are willing to reduce prices to meet the market,” Mr Kusher said.
Hobart properties has seen a significant rise in their days on market, going from nine days over three months to April 2018 to 32 days over the last three months to April 2019. Regional Tasmania has also ballooned somewhat, increasing from 39 days a year ago to 58 days over the last three months to April 2019.
“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,” Mr Kusher said.
Known for its market volatility, according to Mr Kusher, both Darwin and regional NT property’s days on market figures are above last year’s, at 77 and 67 days and 81 and 75 days, respectively.
“Despite the ongoing value falls in Darwin, there hasn’t been a blowout in days on market although it has recently broken its reducing trend,” Mr Kusher said.
In Canberra, property has taken more time to sell over the last year, with its current days on market for the last three months to April 2019 sitting at 52 days, compared to the same period last year with 31.