Pendulum swings towards property vendors: RP Data
An RP Data quarterly review of the residential property market and the Australian economy has found that vendors are much more empowered than at the same time last year.
It found vendor discounting - the average difference between the original listing price and the final contract price on a property sale – had swung the vendors’ way.
Discounting provides the best indication about how much negotiation is in the market and is a good proxy for understanding the balance between buyers and sellers.
The review found that, over the past year, the housing market has begun to start favouring the seller. Across the capital cities, the average discount in September for a typical house was -5.7%, and for units -5.2%.
At the same time in 2012, the average discount rate for houses and units was -7.2% and -5.7% respectively. This highlights improved vendor price expectations over the year.
Discounting levels are now at their lowest levels in more than three years, reflecting recent significant improvements in selling conditions.