Sydney And Melbourne Homes Are Selling Much Quicker Than Other Capital Cities
In an article for the website Property Observer, senior research analyst Cameron Kusher writes about the current housing situation in Sydney and Melbourne.
We all know that property values have been going up Australia-wide for almost five years. We also all know that nowhere have homes been selling as quickly as in Sydney and Melbourne.
But there is another factor that really demonstrates the incredible housing market dynamics in Sydney and Melbourne.
How quickly are these homes selling?
Kusher uses a chart called the “Vendor Discount and Time on Market metrics” to better answer this question. The chart shows the percentage difference in the initial sale price compared to the final sale price. The “Time on Market Metrics” is the average number of days when a house is first put up for sale to the time it is actually sold.
Sydney and Melbourne Time on Market metrics
For Sydney and Melbourne homes, both cities average at an astonishingly short 30 days. This includes the time a property is initially listed to the time it is officially sold.
Other cities did not do quite so well. For example, Canberra’s lowest turnaround is about 40 days and Perth goes as high as 80 days.
Looking at the time on market metrics for Sydney and Melbourne in the past eight years, it is evident that the two cities have a much lower average than those in other Australian cities.
Average Vendor Discount for the Capital Cities
Kusher then shows that for the past eight years, Sydney, Melbourne, and Canberra have seen a dip in the discounting average be sellers in the past few years. While the cities of Perth and Darwin’s discount averages continue to rise.
Sydney and Melbourne homes both have a 5 percent discount average for this year. The other capital cities except Brisbane and Canberra have posted a discount average ranging from 6-8 percent.
According to Kusher, Sydney and Melbourne homes are doing great in the “Vendor Discount and Time on Market Metrics.” Both cities are currently recording low levels of discounting and fast time-on-market rate. This is due to high housing demands and dipping stock levels. You can read the original article here.
In my mind, Kusher makes a very useful observation. Combining the time on market and discount rate trends clearly shows what is happening in the Sydney property market. It intuitively makes sense that when there is a short time on market, there will be less pressure for a vendor to lower their home’s asking price.
The figures demonstrate that Sydney remains a seller’s market and as a home buyer or investor you really want to try and even the odds as much as possible. Do your research, be quick and decisive to act – and have a professional team on your side. If you are looking to purchase a home in Sydney’s eastern suburbs, contact me today, so we can tilt these odds.