With properties in some council areas across the country now taking much longer to sell, this could well be the time for cashed up buyers to take a look at the latest ‘time on market’ research prepared by research analyst Cameron Kusher for the RP Data weekly Property Pulse.
Based on Australia’s local government areas, this analysis captures those regions where the time on market data has recorded the greatest increase over the past 12 months to October 2011.
According to Mr Kusher, with housing markets transitioning out of a growth cycle over the past 12months and value falls experienced across most regions, vendors have found it increasingly difficult to sell their properties.
”We are now seeing an increase in the amount of stock available for sale where it has risen to record highs over the year. Vendor discounting levels have increased and the negotiation process has taken longer. Subsequently, the average time on market has risen across most regions,” he said.
Looking at those regions in which it takes a long time to sell, the results show that premium housing has recorded some of the largest increases in the time it takes to sell for sale with the prestigious suburb of Mosman Park on Perth’s Swan River recording the largest increase for capital city houses of 59 days on market. Homes in the suburb are currently taking 123 days to sell.
In yet another hit for Perth, units in the leafy suburb of Cottesloe are currently taking up to 160 days to sell, up by 74 days over the year.
A large number of regions within Perth feature on the list where units in particular are taking a long time to sell as do most council areas within Hobart.
Within the remaining capital cities, Mr Kusher said it is typically unit markets within the outer suburbs that have recorded the greatest increase in time on market.
Across regional Australia, Plantagenet in South-West Western Australia has seen the greatest increase in the average time on market for houses with the average selling time increasing by 123 days over the past 12 months. The Plantagenet council area also has the highest average selling time for houses of all Australian council areas at 235 days.
Regional areas of Western Australia, South Australia and New South Wales account for the vast majority of council areas highlighted.
The Central Coast council area on Tasmania’s northern coastline sandwiched between Burnie and Devonport recorded the greatest increase in the average time to sell for a unit over the year with units now taking 166 days. The time it takes to sell has increased by 104 days over the past year.
Across the regional areas of the country, 7 council areas in both New South Wales and Victoria have been amongst those to record the greatest increase in average time on market followed by 6 in South Australia.
Overall, Mr Kusher said that the results are quite varied.
”The inner areas of each capital city have often recorded some of the largest increases in the average selling time,’’ he explained. ”This reflects the broad trend of premium housing markets recording weaker conditions than lower priced markets.
”In regional areas, although coastal markets have been the weakest performers in terms of value growth, these markets have generally been underperforming for some time and in many instances have not recorded a substantial increase in time on market over the past year.’’