Melbourne’s long-suffering homebuyers are cashing in as three-quarters of homes sell for less than their initial listing price.
The figures revealed in CoreLogic’s latest Property Pulse reflect an average 6 per cent discount, equating to more than $45,000 on a $745,000 median priced house in the city.
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It’s been 12 years since so many homesellers were willing to cut back their expectations.
In April last year barely a third of sellers would reduce their price to get a sale.
Buyers advocate Cate Bakos said many sellers were now negotiating with buyers — and Christmas would serve as an “emotional deadline” to convince more to do so.
A buyer was able to save thousands of dollars on this South Yarra apartment.
“Even good properties are discounting, though obviously not all of them,” Ms Bakos said.
“We are in the thick of a buyer’s market.”
Ms Bakos last week bought a three-bedroom apartment at 10/7 Rocklea Rd, South Yarra, for $25,000 below its $760,000 asking price.
With close to a thousand homes expected to go under the hammer each weekend for the rest of the year, Ms Bakos advised that a below-reserve bid at auction would give buyers a chance to drive a hard bargain immediately after auction without worrying about competition.
But she said first-home buyer demand was keeping competition fierce below $700,000, meaning discounts were unlikely in this bracket.
It’s not all bad news for sellers.
Melbourne’s suburbs have seen exceptional growth in recent years.
CoreLogic Australian head of real estate Geoff White said after five years of strong price growth, many were aware they were making a great profit — hundreds of thousands of dollars in many cases.
They would also be able to buy in the same environment they were selling.
“Owners have done very well in the last four or five years and, yes, the market has corrected — but over time they have seen an enormous gain,” Mr White said.
“And that (76.3 per cent) figure is a sign that they are recognising that they have done well over time.
“It is what it is and this is just people being prepared to accept that.”
Mr White said sellers were adjusting reserves at auction and dialling back price expectations for private sales.