There have been significant shifts in Australian housing market demand over the past six-months due to the COVID-19 outbreak. Some areas have seen a slowdown in market activity. This offers buyers the chance to negotiate.
CoreLogic discovered that the median number of days on market is a good indicator of changes in demand. When the market is slowing, the said measure rises, providing buyers with bargaining power.
CoreLogic reported that it took an average of 45 days for an average Australian house to sell. This was in the three months between June and September. While this was an improvement on the June quarter, it was still significantly greater than that before COVID-19. This indicates that food demand is still low.
The change in the days on market in capital cities or regional marketplaces during the pandemic is a sign of a trend.
CoreLogic data revealed that the average dwelling was only on the market for 30 days in April across all capitals. This may be due to the strong market conditions that existed before the outbreak. It was up to 44 days in the three months of July, and it is expected to drop to 40 by September.
Contrary to popular belief during the pandemic, there were fewer days for regional markets than usual. Homes in regional markets remained open for 57 days until they were sold during the three months ending September. This is lower than the record for the first quarter which saw a market remain open for 59 consecutive days.
You can determine which buyers are more willing to bargain by using the days on market measurement in capital cities and regional markets.
What areas are most likely to offer buyers bargaining power
The number of days-on market rose in Sydney from 26 to36, and it fell by 65 percent in regional New South Wales. It took properties longer to sell in Parkes LGA Regions and Canterbury-Bankstown LGA Markets during September quarter.
Recent restrictions in Melbourne have affected the days-on-market of properties across the city. The average days-on the market in Melbourne has been improving, suggesting that sellers are returning back to the market. However, the average period for properties on the market was 36 days, which is still significantly longer than the 30-day period that existed before COVID-19.
Perth is moving from being a buyers’ to a sellers market. Despite the pandemic’s effects, Perth experienced a quick recovery due to increased listings and higher sales volumes. A 40-day average of days-on-market was recorded in September quarter, which is lower that the 52-year-old average.
Hobart is capital city with the lowest days-on-market. The average Hobart dwelling was on the market for nine days before COVID-19. In the last three months, this number has risen to 27.
Darwin, however remains the largest buyer’s market. It had 56 capital cities and the longest median days on market. However, this was an improvement on the 72 days that it took to get to market in its first three-months.
CoreLogic’s graph shows how the market for major housing markets has changed between the March quarter and the three months ending in September.