Vendor discounting eases

A recently released report from RP Data shows that vendor discounting fell during January 2013, pointing to further improvements within Australia’s housing market.

 

The report revealed that the average discount on a typical home was -7.5 per cent from its initial list price, while the combined capital cities figure 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.

 

“This spike in activity equates to a higher level of competition amongst buyers at a time when there are fewer homes available for sale,” said RP Data’s Senior Research Analyst, Cameron Kusher.

 

The report also showed that capital city dwelling values had increased by 3.3 per cent between May 2012 and February 2013.

 

According to Mr. Kusher, if sellers have to apply fewer discounts in order to sell a property, it is a positive sign for the housing market.

 

 “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,” said Mr Kusher.

 

“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.

 

“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,” concluded Mr Kusher.

 

For more information about the residential property market in your areas of interest, please feel free to stop by your local CENTURY 21 Real Estate office for expert and clear advice.

Posted by Charles Tarbey on 12/04/2013 at 12:00 AM | Categories:

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