Days on market for Canberra houses up more than 40 per cent over 12 months

Days on market for Canberra houses have climbed more than 40 per cent over the past 12 months.

New Domain data shows the average days on market for houses over the three months to June 2019 was 73.

Houses in Molonglo Valley had the longest time on market at 164 days over the six months to June 2019, followed by the Inner South at 108, and Gungahlin at 88.

Sellers in Weston Creek are most likely to have the quickest sale with the average days on market for houses at 49 days.

Units are lingering on the market longer at 101 days – a year-on-year rise of 17 per cent.

Queanbeyan apartments take the longest to sell at 141 days, followed by the Inner North at 115 days and Woden Valley at 114. 

Domain Group economist Trent Wiltshire said the days on market was reflective of a softer market in Canberra, but the data’s time series did include events that resulted in a slower market.

“It’s definitely a sign of a weaker market in Canberra over the first half of 2019, but the data also captures the April and May slow period with Easter and the election campaign when buyers and sellers were cautious and there were not many transactions,” he said.

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But Mr Wiltshire said he expected a market turnaround in spring.

“I think things are starting to speed up a little bit in terms of a turnover but we’re already forecasting a bit of a turnaround in Canberra,” he said.

“On current data, the end of the election and interest rate cuts indicated a bottoming out … even though things have changed, it’s early days.”

A stamp duty abolition for first-home buyers in the ACT that came into effect this week is also likely to have an impact.

“Similar policies in other states have resulted in a spike in first-home buyer activity, combined with lower interest rates and APRA changes, first-home buyers will step into the market,” Mr Wiltshire said.

Total supply is also up in the territory, with the number of listed houses up 19 per cent year-on-year and the number of listed units up 23 per cent.

Last month’s clearance rate was 49 per cent, down 12 per cent points on June 2018. Unit auctions dragged the performance down with only 22 per cent selling under the hammer. For houses, 51 per cent sold under the hammer.

Tuggeranong had the strongest clearance rate at 67 per cent and the Inner South had the weakest at 31 per cent.

It comes as last week’s Domain Property Price Forecast tipped the Canberra market would recover from its recent slide by the end of the year.

House prices are forecast to grow 2 per cent by year’s end, and next year growth of between 4 to 6 per cent is predicted. Unit price forecasts are more modest with a one to 3 per cent jump over next year.