Properties selling in record time
Properties in capital cities are being sold at record-breaking speed with days on market at an all-time low, according to research by RP Data.
On average, houses took 38 days to sell last year, the lowest turnaround time since data tracking began in 2005.
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By comparison, houses spent an average of 56 days on market in 2012.
Similarly, units sold in 35 days on average in 2013, down from 53 days the previous year.
RP Data research analyst Cameron Kusher said this trend was linked to a reduction in vendor discounting.
“Lower discounting levels mean that buyers and sellers are generally able to come to an agreement on price quicker,” he said.
“Looking at the level of discounting taking place in the market across the average time on market, we see that well priced new stock is selling quickly at a very low discount level."
An analysis of vendor discounting considers the difference between a property’s first advertised sale price and its ultimate selling price.
In December 2013, the average discount on a capital city house was 5.7 per cent, while units were on average discounted by 5.5 per cent.
By contrast, in late 2012, discounting levels were at 6.9 per cent for houses and 6.3 per cent for units.
“The current levels of vendor discounting are the lowest they have been since early 2010 for houses and mid- to late-2010 for units,” Mr Kusher said.
Throughout the capital cities, 29.5 per cent of all houses and 37.5 per cent of all units sold for above their original list price.
Mr Kusher said these indicators reflected broader market conditions.
“Property transactions have increased measurably over the past year and home values have also risen,” he said.
“These conditions are reflective of the increasing level of competition for those properties available for sale and have undoubtedly contributed to the improved discounting and time on market figures.”
He predicted time on market would remain low over the first half of the year while discount levels are likely to improve further.