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Staff Reporter
The amount by which vendors discount fell in January, pointing to an improving market according to new statistics from RP Data.
RP Data confirmed that the average discount on a typical home was 7.5 per cent from its initial list price, while the combined capital cities rate sat at 6.4 per cent.
At the same time last year, discount levels were recorded at a greater 8.1 per cent nationally, and 7.2 per cent across the combined capital cities.
According to RP Data's senior research analyst Cameron Kusher, if sellers have to apply fewer discounts in order to sell a property, it is a positive sign for the housing market.
Capital city home values also increased by 3.3 per cent between May 2012 and February 2013, pointing to further recovery.
“This spike in activity equates to a higher level of competition amongst buyers at a time when there are fewer homes available for sale," Mr Kusher said.
“Lower levels of discounting by vendors can also mean that sellers are becoming more realistic about their final sale price. Having said that, there is always going to be a level of negotiation on price."
Mr Kusher said there is a relationship between home value growth and vendor discounting.
“With home values continuing to increase over more recent months, we would expect that the level of discount over the coming months will produce further improvements in the level of discounting by vendors," he said.
“An improvement in levels of vendor discounting is also expected to be supported by higher auction clearance rates, evidenced so far in 2013 and the recent increase in sales transactions and lower number of properties available for sale - particularly new properties being listed for sale."
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