The hint that the housing market is heading back to normal
The number of sellers who ultimately accept less than their listed price has roared back up over the past three months, according to data from CoreLogic, suggesting the housing market may be returning to normal.
Over the three months to October this year, more than 75 per cent of properties sold for less than they were listed for. In comparison, over the same period last year, 70 per cent of properties sold for less than the listed price, while in October 2014 less than 50 per cent of properties sold for less than their listed price.
This is important as the trend of the past 12 years is that the majority of homes sold in the majority of capital cities sell for less than their listed price, suggesting the important truth: buyers always want to pay less than sellers think their house is worth.
The story becomes all the more stark when looking at Sydney and Melbourne, the beating heart of the past few years of the Australian property market, where an overwhelming number of homes sold for more than their listed price.
CoreLogic head researcher Cameron Kusher said Sydney and Melbourne sellers over the past few years had come to expect their homes would sell for more than they listed. But the long-term trend was the opposite.“It highlights that vendors haven’t adjusted appropriately their price expectations just yet,” he said.“What this data highlights is that purchasing a property is about negotiation.”