Aussie homeowners looking to sell this spring are facing a brutal new reality. Pictured: Herron Todd White CEO Peter Maloney
Aussie homeowners looking to sell this spring are facing a brutal new reality, with vendors being warned many properties “simply will not sell” unless price expectations come down.
After five years of frenzied competition, rapid price growth and chronic stock shortages, buyers who once had to fight for a listing are now taking their time, making more conditional offers and refusing to chase sellers on price.
Buyers who once had to fight for a listing are now taking their time. Picture source: realestate.com.au
Herron Todd White CEO Peter Maloney said vendors still anchored to 2025 price expectations could be in for a rude shock this spring selling season.
“The discounting figure is the one I would watch between now and Christmas,” Mr Maloney said.
“Four per cent is the largest concession vendors have made since May 2023, and it is telling you exactly what is required to secure a buyer this spring.
“Many properties simply will not sell, and for most of the rest the only path to a contract is a price cut.”
Changes to negative gearing, CGT and SMSF purchasing have added to uncertainty.
The market, currently in a downturn following three interest rate rises, while changes to negative gearing, CGT and SMSF purchasing have added to uncertainty.
Property experts are spotlighting interest rates as the dominant factor shaping buyer confidence and determining how much activity the market will see this spring.
HighSpec Properties Buyer’s Agents Director Amanda Gould said many properties are attracting only one or two buyers, unless they are priced below $1m.
“We’re starting to see a few more buyers at home opens, but they’re still very hesitant,” she said.
“We only have one to two buyers per property unless it’s under a $1m. Good properties are still selling, – around that $800,000 – $950,000.”
MORE NEWS: Building begins on nearly 200 new homes in key Olympic hotspot
Shock: Spend $50k, make six-figures in Australia
‘Last to be paid’: Tradie dumps worksite grind in shock 24pc spike
Homes are also taking longer to sell with median days on market climbing.
Homes are also taking longer to sell, with median days on market climbing to 44 days in July, up from just 27 days a year earlier, while typical vendor discounting has widened from 3.3 per cent to 4 per cent.
But buyers haven’t disappeared — they are just becoming increasingly selective about where they spend their money.
New buyer inquiry data from realestate.com.au shows demand has actually surged in some Queensland suburbs despite the growing number of homes for sale.
And the biggest increases are overwhelmingly concentrated in more affordable outer suburbs, suggesting price-conscious buyers are shifting their attention further from the major city centres.
Realestate.com.au economic analyst Megan Lieu. Supplied
Realestate.com.au economist Megan Lieu said the figures showed affordable pockets were continuing to attract strong demand even as the broader market softened.
“A lot of these areas also tend to be outer-ring regions where there are bigger lots of land,” she said.
Ms Lieu said demand at the cheaper end of the market was continuing to outperform the middle and top end, with record-low affordability pushing buyers towards areas where they could still get into the market.
“Especially with affordability being at record lows, I think there’s going to be demand for areas that have options potentially for first-home buyers,” she said.
Realestate.com.au economist Megan Lieu said the figures showed affordable pockets were continuing to attract strong demand.
Realestate.com.au data has revealed the hotspots which have seen the largest increases for house hunter inquiries per listing across the past 12 months, including Caulfield East, Belgrave Heights, Seville, Hoddles Creek and Upper Ferntree Gully.
All four latter areas are located, or partially located, in the Yarra Ranges Shire, home to both the Yarra Valley and the Dandenong Ranges.
The Realestate.com.au figures measure higher-intent buyer activity such as registering for an inspection or contacting an agent by email or text, rather than simply searching for a property.
So, while the enquiries do not necessarily translate into sales, Ms Lieu said they provided an indication of where buyer interest and demand were increasing.