Discounting by house sellers easing, but time on market up: RP Data

National vendor discounting eased over the September quarter, however the rate of discounting remains at inflated levels, according to RP Data.

Across the capitals, vendor discounting sits at -6.4% for houses and -6.1% for units.

At the same time last year, vendor discounting was -5.8% for houses and -6.05% for units.

Over the past five years the average vendor discount has been recorded at -5.9% for houses and -5.6% for units.

“The current high level of vendor discounting is reflective of the slowdown in market conditions across the county, increased stock levels and greater competition amongst vendors for a smaller pool of buyers,” RP Data head of research Tim Lawless says.

“With the market recording value falls across each capital city and listings at elevated levels, it is anticipated that vendor discounting is likely to remain at above average levels.”

Houses are currently taking an average of 56 days to sell with units typically selling in 54 days, according to RPData.

A year ago it took an average of 46 days to sell a house and 43 days for units.

“The results show that the average time it takes to sell a property has increased as market conditions have softened,” Lawless notes.

Lawless says the time on market and vendor discounting figures continue to suggest that there is a disconnect between prices that vendors are seeking and those that purchasers are prepared to pay for the properties currently available.

The latest report noted houses have taken 47 days and units 43 days to sell over the last five years, highlighting that both were currently at levels well above average.

The average time on market is simply the time it takes from when a property is initially advertised for sale to when it ultimately sells.

Vendor discounting measures the average amount vendors have to discount their properties from the initial list price in order to sell their property by private treaty.

This article first appeared on Property Observer.