Sydney has an extended number of days to stay on the market through privately sold properties. (photo by Australian Financial Review)
According to the Australian Financial Review, the latest monthly report from the Domain shows Sydney has extended its stay in the market through privately sold properties.
Privately owned homes in Sydney took 63 days to successfully sell by the end of May, an increase from 45 days during the housing boom last year. Since March, the private sale of independent homes in the market has been hovering for more than 60 days.
On average, private sales took 64 days, compared with 54 days during last year`s boom. Since February, private units have been on the market for more than 50 days.
Melbourne`s private home sales are now relatively stable, reflecting a more stable housing market than Sydney.
Private sales of Melbourne`s independent homes are reported to have taken an average of 48 days to sell successfully. The average number of days sold so far in 2018 is roughly the same as in 2017.
For flats, private sales took an average of 75 days, down from nearly 100 days last year.
Both the closing rate for public sales and the average number of days consumed by private sales indicate a decline in demand in Sydney and a steady pace in Melbourne.
In addition, as of the end of May, the discount between advertising prices and final sale prices in Sydney had risen to 6.4 percent, up from 5 percent during last year`s boom. In the past five years of prosperity, Sydney`s home price discount has never been more than 5%.
The same is true in Melbourne, where home price discounts averaged 5.7 percent at the end of May, up from 4.6 percent during last year`s boom.
The auction market is also in the doldrums. The initial liquidation rate in Sydney`s housing market last week was 55%, compared with 58% in Melbourne.
