In the past three months, the number of sellers who eventually accepted below the listed price has rebounded sharply, according to CoreLogic, suggesting that the property market may return to normal.
In the three months to October, more than 75 per cent of properties sold for less than listed prices. In contrast, 70 percent of homes sold for less than 50 percent in the same period last year, compared with less than 50 percent in October 2014.
This is important because the trend over the past 12 years has been that in most capital cities, most homes are sold for less than listed prices. This shows an important fact: the buyer is willing to pay a price that is always lower than the seller thinks the value of his property.
Sydney and Melbourne have been at the heart of Australia`s real estate market in the past few years, where the vast majority of homes have been sold for more than listed prices.
Cameron, lead researcher at CoreLogic? Kuser (Cameron Kusher) said sellers in Sydney and Melbourne had been hoping over the past few years that their homes would cost more than listed prices, but the long-term trend was the opposite.
"this highlights that sellers have not adjusted their price expectations properly," he said. These figures show that buying a house is a negotiation. "
House prices need to fall
The liquidation rate results show that house prices need to be adjusted according to the new expectations.
The national liquidation rate has fallen from its peak in 2017 to a weighted average of 43.4 percent, according to CoreLogic.
Last week`s worst-performing city was Perth, where only 20% of homes were sold at auction, while Melbourne and Adelaide tied for the top spot at 46.2%.
Many homes failed to sell because bidders did not reach the price the seller wanted, and some experts believe the auction system has exacerbated the problem.
But CoreLogic`s data, which look at private transactions, represent an absolute share of Australian home sales, suggesting that the phenomenon is more widespread in the housing market.
However, the only exception in the market is Hobart, where house prices continue to rise. The final selling price is still higher than expected, according to CoreLogic.
Chief Economist Nerida of Real Estate Australia Group? "We did see sharp increases in prices in Melbourne and Sydney in the past, and sellers need time to adjust prices, and people are more willing to get last year`s prices," Cornbetter than (Nerida Conisbee) said.
She said the CoreLogic data should lead to speculation about what a normal market should look like and whether the current fall in prices is bad for Australia.
"This does not mean anything for the general who owns the property for five years. It`s only a little sense when you`re going to sell it right now, or when your financial situation is in trouble."
Home prices in Australia have risen 44.8 percent over the past decade and 209.9 percent over the past 20 years, according to CoreLogic, which is now back to its levels in early 2017.
The housing market returns to normal
A normally stable market could be a market where "sellers have an expected price and people are willing to pay a slightly lower price," he said.
"people always want their house to sell for the best possible price," she said.
Cameron of CoreLogic? Kuchel (Cameron Kusher) also supports this view because housing affordability has fallen sharply over the past few years. "
