Homes are selling much quicker in Sydney and Melbourne

Homes are selling much quicker in Sydney and Melbourne

Although values have been increasing for almost 4.5 years, homes continue to sell quite rapidly with a relatively low level of discounting occurring from vendors.

The vendor discount and time on market metrics are important measures of current market conditions.  The vendor discounting metric looks at properties selling for less than their original list price and looks at the percentage difference from initial list price to ultimate sale price.  The time on market metric shows the average number of days between when a property is first listed and when it ultimately sells.  It’s important to note that each of these measures is based on private treaty sales and therefore excludes auctions.

In September 2016, the average days on market across the combined capital cities was recorded at 39 days.  At the same time a year earlier the average days on market was a slightly lower 36 days. 

Average days on market, 
combined capital cities

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The second chart highlights the average days on market figure across each of the capital cities for each of the past 8 years in September.  Over recent years homes have been selling much quicker in Sydney and Melbourne than they have across the other capital cities.  Homes in Hobart and Canberra have seen fairly large falls in days on market over the past year which aligns with accelerating value growth.  In Perth and Darwin homes have seen a large rise in the average days on market as selling conditions have become tougher and values have declined.

Average days on market,
individual capital cities as at September 

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In September 2016, the typical home which sold at a discount from its original listing price was discounted by -5.7% across the combined capital cities.  In comparison, at the same time a year earlier the typical level of discounting was recorded at -6.0%.  The lower level of discounting is reflective of more demand and fewer homes for sale but is also likely to reflect more realistic initial listing prices from vendors.

Average vendor discount,
combined capital cities

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The final chart shows the discounting levels for each capital city in September over each of the past 8 years.  Once again Sydney and Melbourne, along with Canberra, have been seeing low levels of discounting by vendors over recent years.  In Sydney and Melbourne in particular this is indicative of strong housing demand which has led to many homes selling in excess of their initial list price.  Despite only moderate growth in values over recent years Canberra has consistently recorded low levels of discounting.  In Perth and Darwin as the housing market has wakened over recent years discounting levels have increased significantly.

Average vendor discount,
individual capital cities as at September

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After combined capital city home values have been increasing for almost four and a half years (mainly in Sydney and Melbourne) the level of discounting and time on market remains extremely low.  This is being driven by ongoing strong housing demand coupled with relatively low stock levels.  While these conditions persist it is difficult to see how home values in Sydney and Melbourne in particular, won’t continue to increase.


About CoreLogic

CoreLogic Australia is a wholly owned subsidiary of CoreLogic (NYSE: CLGX), which is the largest property data and analytics company in the world. CoreLogic provides property information, analytics and services across Australia, New Zealand and Asia, and recently expanded its service offering through the purchase of project activity and building cost information provider Cordell. With Australia’s most comprehensive property databases, the company’s combined data offering is derived from public, contributory and proprietary sources and includes over 4.4 billion decision points spanning over three decades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location, hazard risk and related performance information.

With over 20,000 customers and 150,000 end users, CoreLogic is the leading provider of property data, analytics and related services to consumers, investors, real estate, mortgage, finance, banking, building services, insurance, developers, wealth management and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and geo spatial services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. CoreLogic employs over 650 people across Australia and in New Zealand. For more information call 1300 734 318 or visit www.corelogic.com.au.

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