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Homes lingering on market for longer

The median time on market for a residential dwelling has almost doubled, reflecting subdued demand for housing amid falling property prices, a new analysis from CoreLogic has revealed.

According to an analysis of property transaction data from CoreLogic research analyst Cameron Kusher, over the three months to April 2019, the median time on market for a dwelling nationally was 60 days, increasing from 35 days in the previous corresponding period.

Mr Kusher noted that the increase reflects weakening demand for housing, coupled with excess supply in the market.

“In a strong market, properties will typically sell quickly, while in weaker markets, where stock levels are high and buyer urgency is absent, properties tend to take longer to sell,” Mr Kusher observed.

He added: “The rapid rise in time on market is symptom of higher supply (advertised stock levels across the combined capitals are at their highest level for this time of the year since 2012) and less demand (capital city settled sales are down 16 per cent year-on-year).

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The analysis also revealed that the median time on market increased across both capital city and regional markets, with dwellings in Sydney taking 62 days to sell over the April quarter, up from 31 days, and taking 72 days to sell in regional NSW, up from 50 days.   

“As both housing markets have weakened, there has been an ongoing steady increase in days on market,” Mr Kusher added.

The trend across NSW’s property market was mirrored across the rest of the country.

Over the past three months, Melbourne dwellings took an average of 43 days to sell compared to 27 days over the same period in 2018.

In areas outside of Melbourne, properties were on market for approximately 54 days to sell compared to 37 days a year ago.

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Dwellings in Brisbane listed for an average of 60 days over the past three months, while in regional Queensland, they have taken 77 days to sell.

Over the same period in 2018, Brisbane dwellings were taking 34 days to sell, and regional Queensland dwellings took 47 days.

“Although values have declined over the past year in Brisbane and regional Queensland, it has been a much more moderate decline than in Sydney and Melbourne,” Mr Kusher observed.

“Despite this fact, there has been a sharp spike in days on market, highlighting that selling conditions have become much tougher despite values having only fallen moderately.”

Dwellings in regional South Australia was the only region to experience a drop in the time spent on market, from an average listing period of 95 days in the April quarter of 2018 to 92 days.

[Related: Improvement in housing affordability at six-year high]

Homes lingering on market for longer
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