Australian Real Estate Market Faces Changing Dynamics, Offering Both Challenges and Opportunities

The Australian real estate market is seeing some shifting dynamics, with longer selling periods becoming the norm despite a drop in listings, according to two recent articles. This has prompted some experts to advise sellers to adjust their expectations and be prepared to accept lower offers.

Henry Thai of Property Tribune, highlights data from Ray White Group that shows homes have been on the market for an average of 31 days, up from the 22-day average seen in June last year. However, this trend isn’t expected to persist, according to Nerida Conisbee, Ray White Group Chief Economist. “With price growth back on the move, it’s likely that this will soon start to decline again,” Conisbee said.

In contrast, a piece by journalist, Kate McIntyre, draws attention to the advice of celebrated TV property expert Andrew Winter. He suggests that vendors in the increasingly uncertain real estate market should consider selling their homes early or be prepared to accept less than expected. The advice comes as a result of observing houses on Winter’s property makeover program, “Selling Houses Australia,” failing to meet expected prices despite receiving designer renovations.

Winter highlights how early offers are usually the best, saying, “Traditionally in almost all market conditions, even often a booming market, the early offers are the best.” The property expert further advises sellers to be open to other options such as renting out their property, especially in times of gloomy market conditions.

However, it’s not all doom and gloom. The slowdown in sales seems to be affecting only certain segments of the market. As Thai notes, some suburbs are experiencing quicker sales than last year, with homes in Perth suburbs like Midvale and Hillman taking significantly fewer days to sell.

The contrast between the market trends might suggest a more segmented and less uniform market across Australia. While some properties may remain on the market for extended periods, others in different locations or price brackets are selling more quickly.

Yet, the market is expected to bounce back soon. Conisbee’s prediction of the pace of sales picking up again soon, combined with the continued growth in prices, hints at potential improvements in the Australian real estate market’s immediate future.

In the current scenario, both buyers and sellers need to be aware of these shifting market dynamics. While sellers might need to adjust their price expectations and selling strategies, this could potentially open up opportunities for buyers to negotiate better deals.

References:

Thai, Henry. “Australian real estate market sees listings drop, but it takes longer to sell.” https://thepropertytribune.com.au/market-insights/australian-real-estate-market-sees-listings-drop-but-it-takes-longer-to-sell/ 

McIntyre, Kate. “Brutal reality lesson for home sellers and buyers.” https://www.realestate.com.au/news/brutal-reality-lesson-for-home-sellers-and-buyers/