HOMEOWNERS are taking almost twice as long to sell their properties and are slashing advertised prices amid claims the market is at its lowest level in more than a decade.
Figures released by property analysts RP Data last week show houses sold in March this year had been on the market for an average 91 days – almost twice the 54 days recorded for homes sold in March, 2010.
Vendors are having to settle for less when they do sell, with discounting jumping in March to 7.3 per cent of the asking price – or $28,287 on the price of an average home – compared with 5.8 per cent at the same time last year.
The property market is predicted to remain soft this year, with the latest interest rate cuts failing to have an impact on demand, an industry expert reveals.
RP Data figures also show:
HOMES first advertised for sale last month fell to 2930 compared with 4943 in April last year
RENTAL properties first advertised grew to 3083 compared with 2276 in April last year
ADELAIDE house prices fell from a median $400,000 to $387,500 – or 3.1 per cent – in the 12 months to February.
THERE is an estimated $8.6 billion worth of residential stock on the Australian market.
All this data reflected a tough sellers’ market but a ripe opportunity for buyers, property experts say.
Adelaide University director of housing Professor Andrew Beer said the market was the “slowest it had been since the year 2000″.
“The market is adjusting to slower economic conditions and a fall in access to credit for some people in the community,” he said. “But there are no grounds to panic, this is a normal part of the property cycle.”
RP Data figures show suburbs such as Unley Park, Glenelg and Wayville have experienced some of the biggest price falls, while Munno Para in Adelaide’s north has recorded a 41 per cent increase in property values.
Real Estate Institute of SA president Greg Moulton said variations in suburb price performance showed the market was “very, very patchy”.
“Pricing has to be spot on and if it is a little bit above the mark, buyers will make cheaper offers,” he said. Though unemployment was relatively low and the economy sound, the leadership uncertainty of the Federal Labor Party and its poor polling was having an impact on the market. “The thing with SA is there are still a whole lot of people with money to spend but they are sitting on it because the Federal Government is in trouble,” Mr Moulton said.
Interest rate cuts this month were “not impacting” on demand, Mr Moulton said. He hoped expected further cuts would stabilise the market and there would be “some small growth” in prices later this year.
Mr Moulton said many vendors were deciding to rent their home rather than sell if they did not achieve their target sale price.
Click here for source of article written by David Nankervis from Adelaide Now on 19th May 2012.
