According to domain data, about 10% of homes in Sydney and Melbourne were sold at discounted prices in February due to the slowing market.
In Sydney, 10.5% of properties lowered their pre-sale offer prices, up sharply from 5.9% in July 2021.
This number was slightly lower in Melbourne, at 9%. The downward revision was about 5 percent in both cities.
Nicola Powell, head of domain research and economics, said the numbers are a good indication of buyers’ sentiment.
“Therefore, another statistic shows that the housing markets in Sydney and Melbourne are starting to slow down,” Powell told The Epoch Times.
It also reflects the gap between the seller’s expectations and what the buyer is willing to pay now, and the market was sold in 2021 with many properties well above the asking price. It’s well past the stage.
“I think this shows that this year’s market is in a different situation,” Powell said. “We see buyers paying more attention to the amount they pay for their homes. They don’t want to overpay.”
As the number of listings increased, buyers were able to get more choices. This meant that sellers were forced to be more competitive in property pricing in order to achieve a sale.
Prices have already begun to fall in some parts of Sydney as the market cools, Powell said, another indicator that the real estate market is taking the next step.
“We tend to find that market caps are leading the price cycle in both Sydney and Melbourne, and we already have these suburbs where prices are declining quarterly,” she said.
Ray White’s Chief Economist, Nerida Conisby, said discounts increased slightly across the country, especially in Darwin, but not so significantly in regional markets.
In addition, the slowdown in auctions was another sign of a slowdown in the market.
“The slowdown in Melbourne and Sydney is now fairly widely recognized. I think the big story right now is what’s happening at rent levels. It’s really starting to speed up. “I am,” Conisby told The Epoch Times.
Connisby said that when the Sydney and Melbourne markets saw significant price cuts, they were usually in line with negative economic conditions.
Meanwhile, the current economic situation has improved and the unemployment rate has fallen. At the same time, the cost of financing will increase quickly and people may see further restrictions on borrowing.
“Therefore, these things are only adjusting the willingness of potential buyers to pay at such a high price. For now, it seems to slow down the market and flatten prices.” rice field.
Meanwhile, other capitals such as Brisbane, Adelaide and Canberra are also doing well.
“They don’t tend to move closely with interest rates, they tend to move a little more because of what happens with population growth,” she said.
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