The average number of days on the market for properties in Australia is the lowest since 2010.
RP Data reports that the average time on market for capital cities are at historic lows of 38 days for houses and 35 days for units. At the same time in 2012 the average days on market for capital city houses was 56 days and for units, 53 days.
Time on market is counted as the difference between the first advertised date of the property and the contract date once sold. It excludes properties sold at auction. Discounting is on the decline, returning to 2010 levels. In December 2013, the average discount for a capital city house was -5.7% and for a unit it was -5.5%, down from 2012 figures of -6.9% for houses and -6.3% for units.
RP Data’s analysis of sales across capital cities also found properties are selling for more. Over the final quarter of 2013 29.5% of all houses and 37.5% of all units sold for a price at or higher than their list price (up from 25.3% and 30.8% at the end of the September 2013 quarter). Senior RP Analyst Cameron Kusher says the improvement in discounting and time on market is in step with an improving market overall.
“Property transactions have increased measurably over the past year and home values have also risen,” he said. “These conditions are reflective of the increasing level of competition for those properties available for sale and have undoubtedly contributed to the improved discounting and time on market figures.” Mr Kusher said he expects discount levels to improve further and time on market to remain competitively low for the forseeable future.