Growing vendor discounts are helping potential home buyers to bag a bargain.
According to new research by RP Data, sales volumes have been trending down since September 2009. At the same time, vendors are being forced to offer greater discounts for houses and units.
In February 2011, sales volumes were 13 per cent lower than February 2010 and vendor discounting was recorded at 6.5 per cent for houses and 6.6 per cent for units.
Across the capitals, vendor discounting levels were varied, however RP Data reported that there is a strong trend to indicate that discounting is increasing, with Sydney and Hobart the only exceptions.
“If transaction volumes are falling and value growth is limited or continues to fall, buyers won’t need to pay top dollar for properties. Given this, vendors need to question whether or not selling up is the best option based on today’s market conditions,” RP Data’s research analyst Cameron Kusher said.
“For potential buyers, the news is much more positive because buyers now hold the power and can really begin to negotiate and pick up a property at a reduced price.”