Business as Usual
In a figure that really brings home how slow the current decline in the housing market actually is, the ABC reports that house prices in Sydney and Melbourne are currently falling by about $1000 per week. As described by Tim Lawless in the October CoreLogic housing market update for Sydney, it is “hardly a crash”. In the same sentence, Lawless also notes that the relative rate of decline is less than the last decline between 2010-2012.
As the market adapts to the new conditions, the onus is on vendors to be realistic about how long it might take them to sell, and for how much. Again, Tim Lawless, this time writing for the Real Estate Conversation, discusses the fact that we are now – especially with the advent of spring – in a buyers market:
“Buyers have little sense of urgency under these conditions; they can negotiate hard, take their time to make a purchase decision, and if they feel a property price doesn’t reflect fair value, they can easily move onto the next property option.”