22 Aug A QUICK LOOK AT AUSTRALIA’S CURRENT PROPERTY STATISTICS: ARE SELLERS DECREASING THEIR ASKING PRICE?
Home sellers across the country are lowering their price expectations in droves, new data reveals. But which two capital cities have seen the highest percentage of sellers discount their asking price?
Here’s an exciting stat for all you property bargain hunters out there: the percentage of sellers dropping their asking price during COVID-19 has more than doubled in our capital cities across the country, new Domain data shows.
So which two cities have seen the biggest increase in sellers reducing prices?
Well, the head-and-shoulders leader is Sydney, followed by Melbourne, with Adelaide only just nudging out Brisbane and Perth in a photo finish for third.
But all cities are seeing median decreases between $22,000 and $50,000, which we’ll look at below.
A closer look at the stats
Prices dropped on one-in-seven (14.7%) Sydney properties for sale last month, almost a threefold increase from the 5.3% of sellers who decreased their prices a year earlier in July 2019.
In Melbourne, the percentage of sellers dropping their asking price during the COVID-19 pandemic increased nearly four-fold from 3.1% in July 2019 to 11.5% in July 2020.
Adelaide recorded the next highest drop at 10.1%, up from 3.1% last year, while in Perth the percentage of sellers dropping the price almost doubled to 10% from 5.3%.
Brisbane followed closely with an increase to 9.7% from 4.4%, Canberra increased to 8.6% from 6.3% and Hobart to 5.4% from 2.8%. Darwin was the only capital to record only a slight drop – with 5% of sellers reducing prices this year, compared to 5.5% a year earlier.
So what does that mean for prices?
With most capital cities seeing a median decrease around 4-5%, the savings you could receive on a median-priced property in each city are: $49,150 in Sydney, $35,254 in Melbourne, $26,810 in Brisbane, $26,210 in Canberra, $24,553 in Perth, $24,351 in Hobart, $23,745 in Darwin, and $22,121 in Adelaide.
But remember, that’s just the median. Better (and worse) discounts are sure to be found.
A quick note on the value of the decreases
Now, it’s important to note that the value of the decreases isn’t increasing – just the percentage of properties offering decreases.
Domain senior research analyst Dr Nicola Powell explains: “We’re seeing a broader slowdown in properties, rather than prices tanking, which is good news.
“And I think we’ll continue to see price weakness but the falls to date have been minimal and they’ll stay that way, rather than some of those outrageous predictions we saw at the start of COVID-19 of 30% falls.”
Think you might have found a bargain?
Have you recently stumbled across a property bargain that’s too hard to ignore?
If so, get in touch today on 02 9894 1234 and we can help you get your finances in order and apply for a home loan. The lending market can be a little tricky to navigate at present, but rest assured we’re here to help guide you through it.
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