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RP Data Property Pulse (18 July 2013)

RP Data Property Pulse (18 July 2013)

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Published by: leithvanonselen on Jul 18, 2013
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07/28/2013

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Mr Kusher found that if vendors apply the right price on a property atthe time of listing it for sale, it can make big difference and cancertainly lessen the time the property takes to sell. He said that italso means that vendors are able to avoid significant discounts thatcan occur if a buyer believes the property is priced too high.
“Getting
the price right in the first place is imperative - you can sellquicker and move on to your next property. Holding out for a better price tends to ultimately result in a greater level of discounting.
“One
of the greatest challenges for vendors is whether to accept aninitial offer on their property or whether holding out for a better priceis a better 
strategy,”
Mr Kusher said.Based on private treaty sales on a month-to-month basis,
today’s
 research looks at the average discounting level for homes soldacross a number of time frames:
Less than 30 days
30 to 59 days
60 to 89 days,
90 to 119 days
120 days or more. As the accompanying charts show, if a home sells in less than 30days, it has consistently recorded the lowest level of discounting byvendors. On the other hand, homes that sell after 120 days on themarket have consistently recorded the highest level of discountingby vendors.Over the past five years, homes selling in less than 30 days haverecorded an average vendor discount of -3.9 per cent on a monthlybasis. In comparison, homes selling between 30 and 60 days haverecorded an average of -5.2 per cent followed by: 60 to 90 days (-6.5%), 90 to 120 days (-7.6%) and 120 days or more (-10.1%).Mr Kusher said that properties selling in less than 30 days onceagain typically sell with the lowest level of discounting and thoseselling after 120 days have the highest discount levels. At a national level, the results show that homes selling in less than30 days had a typical discount of -3.9 per cent over the past fiveyears, it was slightly better at -3.8 per cent across the capital cities.On the other hand, capital city homes taking longer than 120 days tosell have had an average discount of -9.6 per cent compared to -10.1 per cent across the whole nation. Across the individual capital city markets the trends are once againfairly consistent with quick sales experiencing low levels of discounting while properties that sit on the market for a longer timetypically see excessive levels of discount. Over the past five years,home sales that have taken less than 30 days to sell have recordedan average vendor discount of as little as -2.0% in Canberra and asmuch as -4.6% in Brisbane. Those homes that have taken morethan 120 days to sell have been discounted by an average of asmuch as -10.7% in Brisbane and as little as -7.1% in Canberra.
“The
results highlights the superior selling conditions across thecapital city markets compared to the broader national housing
market,”
he said.Note: The table below provides a five year average vendor discountacross the time on below looks at the market bands across eachcapital city.
DISCLAIMER
In compiling this publication, rpdata.com has relied upon information supplied by a number of external sources and RP Data does not warrant its accuracy or completeness. To the full extent allowed by law RP Dataexcludes all liability for any loss or damage suffered by any person or body corporate arising from or in connection with the supply or use of any part of the information in this publication. RP Data recommends that individuals undertaketheir own research and seek independent financial advice before making any decisions. © 2012 RP Data Ltd.
Quick sales result in lower levels of vendor discounting
 
RP Data researcher Cameron Kusher today shares his analysis in which he looks at vendor discounting levels based on thenumber of days it takes to sell a home.
Vendor discounting levels based on time on marketbands on a month-to-month basis - National
-14.0%-12.0%-10.0%-8.0%-6.0%-4.0%-2.0%0.0%May-06May-07May-08May-09May-10May-11May-12May-130 to 29 days30 to 59 days60 to 89 days90 to 119 days120 days plus
Vendor discounting levels based on time on marketbands on a month-to-month basis
 –
Combined capitals
-14.0%-12.0%-10.0%-8.0%-6.0%-4.0%-2.0%0.0%May-06May-07May-08May-09May-10May-11May-12May-130 to 29 days30 to 59 days60 to 89 days90 to 119 days120 days plus
Source: RP DataSource: RP Data
0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%May-06May-07May-08May-09May-10May-11May-12May-130-29 days120 days plus
Proportion of sales in less than 30 days vs. proportiontaking 120 days or more - National
0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-130 to 29 days 120 days plus
Proportion of sales in less than 30 days vs. proportiontaking 120 days or more
 –
Combined capitals
Source: RP DataSource: RP Data
National Media Release 
RP Data Weekly Property Pulse 
 
Released: Thursday 18 July 2013

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