Since the start of the year, properties are staying on the market longer. Days on market have increased. Overall, the increase has been minor, increasing from 22 days to 24 days however some cities are seeing bigger increases. Sydney has seen the biggest increase, from 19 days to 24 days.
Properties that stay on market longer are typically discounted more. As days on market has increased, so too has discounting. At the end of 2021, discounting hit the lowest level ever recorded at just -2.9 per cent but has most recently declined to -3.2 per cent.
Given that increasing days on market and discounting go hand in hand, right now it is more important than ever that when you go to market, you want to sell quickly. Our latest analysis of Ray White auction results has shown that right now, if you want to sell in a slowing market, auction is the best way to go to market.
Even with declining clearance rates, the proportion of properties selling by auction has increased, as opposed to private treaty or other forms of sale which have fallen. In 2021, an average of 28 per cent of Ray White properties sold via auction. So far this year, this has increased to 33 per cent. In contrast, the proportion selling by private treaty has fallen from 62 per cent of total sales to 59 per cent. Selling by other means has also declined from 10 per cent to seven per cent.
As general advice, if you sell in a slow market and want the best price, you want to avoid your property staying on the market for a long time and becoming discounted. To do this, auction is your best form of sale.
by Nerida Conisbee | More about Nerida Conisbee When investors retreat from the market, what fills the gap? Housing policy often assumes rental supply will continue regardless of how investor incentives change. But rental housing doesn’t exist in isolation from who provides it. The Federal Government has flagged potential changes to … Read more
By Nerida Conisbee | More about Nerida Conisbee Open home attendance data reveals how quickly buyers respond to policy changes. The week following the RBA’s rate decision saw attendance decline nationally, though the depth of softening varies significantly by market. Understanding how buyers respond to interest rate changes … Read more