Vendors in key areas nationwide have begun to offer property discounts in order to sell homes and units quicker and reduce the days a property spends on market.
Typically, such discounting measures are applied to homes and units offered for private treaty sale rather than auction.
One analyst claims it is a sign the housing market is sliding down from peak levels since homes are taking a bit longer to sell and vendors are discounting their initial listings prices by a greater margin in order to sell.
RP Data national research director Tim Lawless said time on market and discounting levels have increased slightly over recent months, but historically still remain low. Mr Lawless said in light of the fact sales volumes are quite flat and home values continue to rise, Aussies can expect further increases in discounting and time on market over the coming months.
“This will create a little more leverage in negotiations for buyers. However, vendors still have a much greater advantage in the negotiation process than buyers,” Mr Lawless said.
“Across the combined capital cities, the level of vendor discounting is recorded at -5.8 per cent for houses, and -5.6 per cent for units. Both figures have increased from recent lows of -5.6 per cent and -5.0 per cent respectively. Capital city houses are typically taking 47 days to sell compared with 48 days a year ago, while units are taking 45 days compared with 44 days a year ago.
“Much like the discounting levels, you can see there has been a slight increase in average days on market over the recent months after reaching lows of 36 days for houses and 34 days for units, both of which were achieved in March of this year.”