Property prices in Australia have finally started to cool down, signalling good times ahead for new homebuyers who have previously been priced out of the white hot market.
According to the latest RP Data / Rismark April results, vendor discounting is increasing across each capital city due to the slowdown in market conditions which has dampened demand from buyers.
“As conditions slow, we would expect that vendor discounting in the market will increase over the coming months,” says research analyst Cameron Kusher. “In most cases across capital cities, the average level of vendor discounting has begun to increase and currently sits at much higher levels that it did at the end of 2009.”
So where can first home buyers snap up a bargain? According to the report, house prices in Brisbane are falling.
“Brisbane recorded the greatest levels of discounting during April at -6.2%,” says Kusher. This data supports the fact that house values in Brisbane have recorded the greatest fall in the month at -1.2%.
Units in Melbourne are also seeing high levels of vendor discounting at -6.5%, despite the fact that unit values in the city have increased by 1.3% over the month.
“This indicates that the market is not necessarily moving as quickly as vendors would anticipate,” explains Kusher.
The key for buyers in this climate is to negotiate hard. “For those looking to purchase, the scope for negotiation is likely to improve with fewer buyers in the market and softening value growth. Should this occur it is likely that purchasers may be able to obtain more competitive prices on those properties available for sale,” says Kusher.
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