I noted yesterday how Sydney and Melbourne was being flooded with property listings.
This is illustrated clearly by CoreLogic’s latest for sale listings data:
As well as the record boom in auction listings:
Today, The AFR reports that vendors are slashing prices in response to the surge in listings:
Analysis by Domain also showed that sellers in the premium suburbs and inner-city areas led the pack in discounting their properties as the market started to shift in favour of buyers…
“These premium markets in Sydney and Melbourne have led the upswing and seen exceptional growth through the housing boom, and they are much further along the price cycle.
“So this is a real indication of where we are in the price cycle because the premium end is now slowing”…
Dr Powell said more vendors were likely to cut their asking prices to get a sale.
“Listings have gone up substantially in recent weeks, which means buyers can now take their time as they have more options and no longer have to battle it out,” she said.
“It made buyers more wary about overpaying, so I think sellers have to be more realistic to meet that expectation on pricing.”
This helps to explain why price growth across Sydney and Melbourne has ground to a halt:
Supply is now overrunning demand across both cities.
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