No more FOMO as properties linger for longer on the market

Some properties are taking longer to sell in the absence of the FOMO that ferociously gripped the market last year.

New data from Domain shows that in select capital cities, buyers can breathe easier, with less pressure to make decisions as listings linger for longer on the market, compared to last year.

However, in all cities – except houses in Hobart – properties are still selling much faster than they were before the pandemic, Domain found.

When broken down by dwelling type, a current two-speed market emerges.

House listings in Canberra, Hobart, Melbourne and Sydney that not selling as quickly now as they did in October last year, research reveals, which indicates less competition.

306/2 Mcgoun Street, Richmond, VIC

SOLD - $400,000

306/2 Mcgoun Street, Richmond VIC 3121

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However, house listings in Brisbane, Adelaide, Darwin and Perth are transacting more rapidly than 12 months ago.

For units, listing periods have drawn out for Hobart, Melbourne, Perth and Sydney.

But in Canberra, Adelaide, Brisbane and Darwin, units are changing owners faster than in October 2021.

Domain crunched private treaty sales numbers to the reveal the transaction timeframes.

Longer on the market means more opportunity for buyers to make the right decision, according to Domain’s expert.

Domain’s chief of economics and research Dr Nicola Powell said days on the market is a “good indicator” of the relationship between supply and demand.

6304/42 Pemberton Street, Botany, NSW

SOLD - $840,000

6304/42 Pemberton Street, Botany NSW 2019

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”While the days on market have gone up compared to this time last year we need to remember that there was extraordinary demand last year, creating high levels of competition and pushing down days on market,” Dr Powell said.

“While increasing interest rates and inflation have tempered demand, the current days on market are still lower than the previous five-year average for this time of year (apart from houses in Hobart).

“Many sellers can expect a sale provided they are meeting market price expectations.”

32 May Street, Birkenhead, SA

SOLD - $710,000

32 May Street, Birkenhead SA 5015

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In a wrap-up of days on the market for buyers, Domain found …

Victoria
“The inner-city areas of Melbourne present good opportunities due to the return of international students, permanent migrants and tourism,” according to the report. Buyers should look for units in Maribyrnong, Essendon, Brunswick and the City of Melbourne.

New South Wales
Units in Sydney’s inner city, Parramatta, Canterbury, Ryde-Hunter Hills and Canada Bay are worth a look. Houses in lifestyle areas including Snowy Mountains, Pittwater, South Coast and Shoalhaven are plonked on the market for some of the longest periods, and so buyers can browse there without severe urgency.

Queensland
There is “great potential”, Domain says, for houses in sunny, holiday-worthy spots that include Port Douglas-Daintree, the Whitsundays, Gold Coast hinterland and Noosa.

37 Bosworth Circuit, Kambah, ACT

SOLD - Price Withheld

37 Bosworth Circuit, Kambah ACT 2902

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Western Australia
Buyers should check out houses in the wheat belt, Esperance, mid-west region and East Pilbara, which are spending some of the longest time of the market and present a way in for a patient home hunter.

South Australia
Properties in “one of Adelaide’s most affluent areas, Walkerville, are spending 3.3 per cent longer on the market compared to last year”, Domain has found. The same goes for units and houses in Adelaide city.

Canberra
Houses in North Canberra, Woden Valley and Tuggeranong have increased in days on the market compared to last year, which means competition has taken a hit, benefitting buyers.

Tasmania
“There are viable opportunities in the west coast, north coast and south-east coast,” according to Domain’s research team.