Property taking longer to sell as stock levels hit record highs in some areas: RP Data

The glut of property sitting unsold on the market means 2012 buyers could find reduced prices in capital city markets given vendors face lengthy blowouts in the number of days on market before sale.

Premium housing has recorded the highest blowout in the average time on market before sale, according to a RP Data survey.

Perth’s Cottesloe houses are currently taking up to 160 days to sell, up by 74 days over the year.

The prestigious suburb of Mosman Park on Perth’s Swan River recorded a 59 day blowout in days on market with homes in the suburb currently taking about 123 days to sell.

“The inner areas of each capital city have often recorded some of the largest increases in the average selling time,” says senior researcher at RP Data Cameron Kusher.

“This reflects the broad trend of premium housing markets recording weaker conditions than lower-priced markets.”

“In regional areas – although coastal markets have been the weakest performers in terms of value growth – these markets have generally been underperforming for some time and in many instances have not recorded a substantial increase in time on market over the past year,” he says.

The data records the greatest increase over the 12 months to October 2011.

According to Kusher, with housing markets transitioning out of a growth cycle over the past 12 months and value falls experienced across most regions, vendors have found it increasingly difficult to sell their properties.

“We are now seeing an increase in the amount of stock available for sale where it has risen to record highs over the year.

“Vendor discounting levels have increased and the negotiation process has taken longer.

“Subsequently, the average time on market has risen across most regions,” he says.

Kusher notes unit markets within the outer suburbs recorded the greatest increase in time on market.

Across regional Australia, Plantagenet in south-west Western Australia has recorded the greatest increase in the average time on market for houses, with the average selling time increasing by 123 days over the past 12 months. The Plantagenet council area also has the highest average selling time for houses of all Australian council areas, at 235 days.

Regional areas of Western Australia, South Australia and New South Wales account for the vast majority of council areas highlighted.

The Central Coast council area on Tasmania’s northern coastline sandwiched between Burnie and Devonport recorded the greatest increase in the average time to sell for a unit over the year, with units now taking 166 days.

The time it takes to sell has increased by 104 days over the past year.

Across the regional areas of the country, seven council areas in both New South Wales and Victoria have been among those to record the greatest increase in average time on market, followed by six in South Australia.

This article first appeared on Property Observer