Tighter lending criteria has led to longer listing times and stagnant prices, particularly on the east coast, according to the Real Estate Institute of Australia (REIA).
According to CoreLogic’s latest housing market update in June 2018, homes in Sydney were selling in 43 days on average compared with 31 days at the same time last year.
The city with the lowest time on the market was Hobart, with 30 days. The city with the highest average time on the market was Darwin, with 93 days.
Data is also showing fewer homes being taken to auction, with clearance rates much lower than a year ago. May marked 12 months since the combined capital city clearance rates reached more than 70%.
Analysts have suggested it is due to progressively weakening selling conditions, which are seeing property prices falling.
Last week, 1400 properties sold at auction, down from 1671 the week before. The preliminary clearance rate did pick up to 55.9%, from 52.6%, but this is expected to drop as more results come in.
“The credit squeeze is seeing less money and properties on the market for longer, particularly in Sydney,” REIA president Malcolm Gunning said.
“This will encourage an environment where those agents that are better qualified, more skilled, from respected established agencies with strong local community involvement, will begin to dominate.”
Gunning said in a slower and more volatile market, skilled professionals with experience and technology will be most effective and sought by vendors as trusted advisers.
He added, “Selling real estate is not a walk in the park. Gone are the days of the boom market where agents were able to quickly sell properties with limited marketing. We are already seeing that the current conditions are putting a strain on low-cost models which rose to prominence at the height of the market.”
