The days on market metric provides an indication as to how quickly properties sold by private treaty are likely to sell. The current data at a national and capital city level shows fairly steady days on market however, we are seeing diverging trends across the individual cities.
At the end of 2017, properties sold by private treaty across the nation typically took 45 days to sell and across the combined capital cities they took 40 days to sell. Both the capital city and national measure has been reasonably steady over recent months however, the days on the market figure for each region was slightly lower a year earlier. In December 2016 it typically took 44 days to sell a property across the nation and 37 days across the combined capital cities.
The trends are changing quite significantly across the individual capital cities.
The typical home took 42 days to sell in December 2017, up from 34 days a year earlier. The 42 days it currently takes to sell is the longest time on market since May 2016 and up from its recent low of 29 days in February 2017.
Homes in the city typically take 33 days to sell which is up from 29 days at the end of 2016. The 29 days at the end of 2016 was also a recent low in days on market for the city.
In December 2016 the typical home took 47 days to sell while a year later they were taking 53 days to sell. The days on market figure has been trending higher since reaching a recent low of 43 days in March 2017.
Properties currently take 41 days to sell which is down from 43 days a year earlier. The typical days on market has been falling over recent months in Adelaide.
There has been a consistent decline in the days on market figure over the past year falling from 58 days to 53 days. After recently peaking at 75 days in August 2017 there has been a sharp fall over recent months.
Properties are currently taking 33 days to sell which is marginally lower than the 34 days a year ago. Homes have been selling quite quickly in Hobart over the past two years as value growth has accelerated.
The days on market figure for the city at 75 days is substantially lower than the 88 days recorded a year earlier and well down on the recent peak of 119 days in March 2017.
At 42 days, properties are taking longer to sell currently than they were a year ago when they took 39 days.
With dwelling values now falling in Sydney and slowing across many cities it is reasonable to expect that over the coming 12 months the number of days it takes to sell a property will trend higher. In particular this is likely to occur in Sydney (where values are already falling) and Melbourne given that both cities have experience rapid rates of sale and strong growth in dwelling values over recent years. Vendors in those cities were market conditions are softening will need to be realistic about their pricing expecations; as properties take longer to sell, buyers will be more inclined to negotiate on asking prices and vendors may face higher competition from other properties listed for sale as inventory levels rise.
On the other hand, markets such as Perth, where housing values have been falling, are now showing a reduction in total advertised stock levels and homes are starting to sell in fewer days which should help to dampen further value falls.