Vendors discounting less

Vendors discounting less

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New figures from RP Data show the level of vendor discounting has dropped nationwide.

According to the latest weekly RP Data property reports, the national average for vendor discounting has hit the lowest point all year, at 4.91 per cent for houses and 4.36 per cent for units.

This is a dramatic reduction since the beginning of the year when vendors were averaging discounts of 5.51 per cent for houses and 5.63 per cent for units.

Cameron Kusher, RP Data research analyst, said he had expected this trend to occur.

“With home values rising and sales volumes increasing, we would expect that the level of discounting would fall," he said.

“Sellers are certainly seeing higher levels of empowerment with more active buyers and a relatively small amount of stock available for sale. I believe we will see this trend continue as there are no signs yet of a significant lift in the volume of stock available for sale.”

The number of homes being advertised for sale across Australia has reduced by 3.8 per cent since the same time last year. While stock on market has been reduced, the number of active buyers is 13 per cent higher, according to estimates from RP Data.

Average discounts for units in Hobart dropped from 8.8 per cent in January to 5.2 per cent at the end of April, while home sellers in Adelaide were discounting just 4.9 per cent on average, compared to 6.4 per cent at the beginning of the year.

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