Real estate in crisis: five times more home sellers lower their asking price to get a sale because the recession is closing in the real estate market
- Prices for homes and units in Australia are falling sharply due to coronavirus bites
- June quarterly results show a huge drop in suppliers lowering their sales price
- Capital city sellers adjust their asking prices down for fast sales
The number of home sellers lowering their asking price is on the rise in Australia as the economic pain of the limitations of coronavirus locking begins to bite.
Real estate platform Domain found that 15.2 percent of Sydney sellers had lowered their asking price in the June quarter, three times higher than the same period last year.
In Melbourne, Australia’s new COVID-19 epicenter, 13.4 percent of sellers dropped the asking price – a figure five times higher than in the three months to June 2019.
The number of home sellers lowering their asking price is on the rise in Melbourne (photo) and other capitals in Australia as economic pain begins to bite due to coronavirus locking restrictions
“National house prices fell 2.0 percent in the quarter of June and unit prices fell 2.2 percent,” said Domain Senior Research Analyst Dr. Nicola Powell in Thursday’s report.
“This is the first quarter showing the impact of COVID-19, reversing upward price swings in Sydney and Melbourne.”
Although declines have largely eased due to unprecedented government stimulus, mortgage holidays and low interest rates, markets in the Australian capital have still been hard hit.
Melbourne’s record high house prices in the March quarter fell 3.5 percent in the three months to June, bringing the median price to 881,369.
Unit prices fared slightly better. They fell 1.7 percent and brought the median price to $ 537,345.
But with the city now in the midst of a second block and a record 484 new coronavirus infections on Thursday, a recovery in Melbourne’s real estate sector is not expected to happen soon.
Australian house prices in the June quarter:
Sydney: $ 1,143,012 -2.0%
Melbourne: $ 881,369 -3.5%
Brisbane: $ 582,847 -1.4%
Adelaide: $ 553,036 + 0.2%
Perth: $ 522,414 -1.5%
Hobart: $ 529,388 + 1.4%
Canberra: $ 819,090 + 4.1%
Darwin: $ 516,213 -1.0%
Combined capitals: $ 804,602 -2.0%
Source: Domain report, median house prices June quarter
Australian unit prices in the June quarter:
Sydney: $ 735,417 -1.90%
Melbourne: $ 537,345 -1.7%
Brisbane: $ 375,285 -4.1%
Adelaide: $ 319,266 -2.9%
Perth: $ 334,284 -4.9%
Hobart: $ 429,464 -1.5%
Canberra: $ 453,750 -1.3%
Darwin: $ 241,461 -3.7%
Combined capitals: $ 560,838 -2.2%
Source: domain report, median prices per quarter of June
Real estate platform Domain found that 15.2 percent of sellers in Sydney (pictured) had lowered their asking price in the June quarter, three times higher than the same period last year
Sydney sellers have also been severely affected by fears of a second wave.
“Buyers’ interest has been renewed from the April lows – people with job security are tempted by low mortgage rates, government financial incentives and benefiting from improved affordability,” said Dr. Powell with reference to the Sydney property market.
“Price expectations have changed rapidly in recent months, with more suppliers adjusting asking prices down to seek timely sales.”
As a result, the median home price in the Port City is now 2.0 percent lower at $ 1,143,012, while the median unit price fell 1.9 percent to $ 735,417.
Real estate prices were usually lower in other capitals, but there were some surprises.
More vendors are adjusting their asking prices down to seek timely sales as those with job security during the COVID-19 pandemic make a bargain
While the average unit price in Canberra fell 1.3 percent to $ 453,750, the average home price skyrocketed 4.1 percent to $ 819,090.
In Brisbane, an oversupply of new apartment blocks caused the average unit price to drop by 4.1 percent to $ 375,285, while the median home price fell by 1.4 percent to $ 582,847.
“The risk to prices increases once the stimulus stops and we face the fiscal cliff,” Dr. Warn warned. Powell.
While lenders have extended the mortgage break for those under severe financial pressure and the JobKeeper grant is extended and lowered until the end of March next year, price forecasts largely depend on how well the economy is doing on the moment the stimulus ends. ‘
“The risk to prices increases once the stimulus stops and we face the fiscal cliff,” said Domain Senior Research Analyst Dr. Nicola Powell