RP Data: Vendor discounts for capital city homes drop
A February 6 blog post from RP Data has highlighted an overall decrease in the amount of time properties spend on the market before sale, as well as a reduction in the average vendor discount needed to secure the transaction, which could be great news for those interested in selling a house in the near future.
A drop in the amount of time on the market illustrates a growing buyer demand across the nation. As supply begins to fall while demand rises, this could lead to great selling conditions for current home owners, which will continue to benefit vendors currently on the real estate market.
The information found the average vendor discount for auction sales decreased between 2012 and 2013, highlighting the growing strength of the vendor market. Over December 2013, the average discount for a capital city house was -5.7 per cent, while units saw an average discount value of -5.5 per cent.
In contrast, the same period during 2012 saw much higher discount levels - measuring -6.9 per cent for homes and -6.3 per cent for units. These current levels of vendor discount are the lowest they've been for houses since early 2010, and mid- to late-2010 for units.
This has directly translated into higher returns for those selling their homes across the nation. During 2013, sales analysis of combined capital city property sales over the December quarter found that 29.5 per cent of all houses and 37.5 per cent of all units sold for amounts equal to or higher than the originally listed value.
These were increases from the September 2013 quarter, when only 25.3 per cent for houses sold above the original price, alongside 30.8 per cent of units. This growth is expected to continue well into 2014, which could be encouraging for those who wish to sell in coming months.
"Property transactions have increased measurably over the past year and home values have also risen. These conditions are reflective of the increasing level of competition for those properties available for sale and have undoubtedly contributed to the improved discounting and time on market figures," said Cameron Kusher, RP Data's senior research analyst, in a the February 6 blog post.
Furthermore, the average number of days a capital city property spends on the market (excluding auctions) before successfully being sold also decreased. The average time on the market for a property during 2013 was found to be 38 days for houses and 35 days for units. Comparatively, the average number of days in 2012 was 56 days for houses and 53 days for units.