Home prices are reaching new highs across many regions and the number of homes sold below asking price is decreasing, yet several areas are still experiencing an increase in homes being sold at a discount, PropTrack said.
The PropTrack April Home Price Index confirmed a modest growth in home prices by 0.23% over the past month, representing a 6.6% increase from April 2023, and marking 16 months of consecutive growth.
Despite the national trend of increasing home prices, some regions are witnessing a different scenario.
Particularly, the Sydney - City and Inner South area saw about 51% of properties sold below asking price, up from 33% the previous year. This 18-percentage-point increase in vendor discounting is significant and leads among SA4 regions.
Other areas like the Riverina and Murray regions also observed notable increases in homes sold at a discount.
The trend of increased vendor discounting is particularly pronounced in regional areas of NSW and Victoria, where price growth has been slower compared to their capital cities and other regional areas.
“This increase in vendor discounting and lower than average price growth reflects a slowdown in demand and potential declines in competition in these regions, which is good news for those looking to buy,” said Megan Lieu (pictured above), economic analyst at REA Group.
With home prices falling by 0.9% over the past year in regional Victoria and a more modest rise of 4.3% in regional NSW, the market conditions are increasingly favourable for buyers.
Despite these regional discrepancies, the overall demand for homes across Australia is expected to remain robust, supported by strong population growth and tight rental market conditions.
“Prices are likely to continue rising as the supply of homes falls short of demand,” Lieu said.
This sustained demand, coupled with a tightening rental market and growing confidence in the market, suggests that while some regions may offer discounts, the broader market trend leans towards higher prices.
Are homes in your area selling at a discount? Join the conversation on the recent PropTrack Home Price Index.
