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Properties selling in record time

RP Data has reported that the average time on market for capital cities is at a historical low, leaving sellers feeling confident.

On average, houses are selling within 38 days of listing and units within 35 days.

During the same time in 2012, the average ‘days on market’ was 56 for houses and 53 for units.

And that’s not the only great piece of news for sellers…

RP data has also shown that not only are properties being sold faster, they are being sold for more than anticipated.

An analysis of sales across the combined capital cities found that over the final quarter of 2013, 29.5 per cent of all houses and 37.5 per cent of all units sold at a price which was at or higher than the original asking price.

This is reflective of the decline in discounting, with the average discount for capital city properties sitting at a low -5.7%.

The improvement in both discounting and time on market is reflective of the broader housing market conditions in Western Australia. Property sales have increased considerably over the past year and rising home values have followed.

With the latest news from the Reserve Bank of Australia locking in the official cash rate at 2.50 per cent p.a. for March, we could anticipate that discount levels will potentially improve even further over the first half of 2014 and it’s likely the average time on market will remain at current low levels.

Notes:
* A discount rate measures the difference between the first advertised price of a property with the ultimate selling price.  The figure is then expressed as a percentage. Average vendor discount excludes properties sold at auction.