Property transactions on the way down
Good news for buyers but bad news for sellers: analysis of settled transaction data for residential property has found settled transactions have been declining for longer than the recent rate of how dwelling values are declining, and they’re set to keep on trending downward, according to CoreLogic.
Since peaking in 2015, CoreLogic’s latest Property Pulse details that the number of settled transactions has been on their way down, with the number in the last year to May 2018 down 7.7 per cent to 465,788 houses and units.
What this means for investors looking to buy is that there is more ground for negotiating a price. Likewise, sellers will need to be able to find a compromise of price when selling a property, otherwise they may be on the market for a while longer. On this, CoreLogic research analyst Cameron Kusher recommended sellers should have a finely-tuned marketing strategy with an appropriate price.
The Property Pulse breaks down the state of settled transactions across each capital city:
Sydney
Settled transactions declined 13.5 per cent over the last year to May 2018 in Sydney, and this even includes a slight rebound in transactions due to the surge of first home buyers in July of last year.
On a month to month basis, monthly sales volumes have been consistently lower than the 10-year average since May 2017.
“While there is likely to be some revision as unsettled sales flow through, it remains likely that ultimately sales volumes are lower over the year,” Mr Kusher said.
Melbourne
Settled transactions declined 12.9 per cent over the last year to May 2018 in Melbourne, which the Property Pulse attributes in part to unit construction and strong demand and low supply of available housing for sale.
Mr Kusher compared Melbourne to Sydney, and added that when off-the-plan properties are completed, transaction volumes should trend upward.
Brisbane
Settled transactions declined 12.1 per cent over the last year to May 2018 in Brisbane, with the monthly sales volumes down when compared to the decade average. Over the next few years, volumes are likely to moderate slightly, but not enough to see a rise.
Adelaide
Settled transactions rose 2.5 per cent over the last year to May 2018 in Adelaide, one out of the only two cities to record a rise.
Perth
Settled transactions rose 1.4 per cent over the last year to May 2018 in Perth, indicating the turnaround is still beginning.
“As the housing market slowly shows signs of improvement sales volumes may continue to climb,” Mr Kusher said.
Hobart
Settled transactions declined 7.4 per cent over the last year to May 2018 in Hobart due to strong demand and little stock to be sold.
Darwin
Settled transactions declined 5.8 per cent over the last year to May 2018 in Darwin, although an increase of transactions over the last few months has been noticed.
Canberra
Settled transactions declined 10 per cent over the last year to May 2018 in Canberra, with month-to-month transactions being right on their decade average.
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