The median time to sell a property nationally rose to 41 days in September, compared with 26 days a year earlier, Cotality said in its October Housing Chart Pack. An estimated 39,747 home sales were recorded nationally in September, representing a 20.9% decline from the same month the prior year.
Capital city vendor discounting reached 4.4% in September, the highest level in five years, while total advertised stock rose 19.1% as homes accumulated on the market faster than buyers purchased them. Cotality Research Director Tim Lawless said the core problem was that buyers were finding commitment harder, with higher interest rates cutting borrowing capacity, household budgets under strain and confidence low, and that even people able to buy were reluctant to act while values were falling.
Auction clearance rates across the combined capitals fell to 47.2% in the most recent week, the weakest figure since April 2020, The Nightly reported. Brisbane recorded its lowest preliminary clearance rate since April 2020, with only 21.4% of its 201 auctions resulting in a successful sale. Sydney's preliminary clearance rate fell 2.8 percentage points to 52.9%, the lowest result in ten weeks, while Melbourne posted 54.8%.
Measured across the first six weeks of the spring selling season, auction volumes came in 31.2% below the equivalent period a year earlier, a level not seen since pandemic lockdowns in 2020. The four-week average auction clearance rate dropped to 48.3%, down from 64.4% recorded in late February. Auction clearance rates are considered a leading indicator for property prices, with a result below 60% pointing to a falling market.
Brisbane and Perth experienced sharp increases in advertised listings, up 60.4% and 64.7% respectively over the past year, while median selling times in Brisbane climbed from 17 to 38 days and in Perth from 11 to 26 days. Lawless said Brisbane and Perth had shifted from markets where buyers had little choice and properties sold quickly to conditions where listings were rising and buyers had more time to decide.
Over the September quarter, national dwelling values declined 3.7%, with Sydney posting the steepest quarterly fall at 4.9%. Regional dwelling values contracted 1.9%, less than the 4.3% fall recorded across the combined capitals. Lawless said outcomes for the remainder of the year hinged heavily on inflation data and the RBA's rate decision, with any additional increase likely to drag further on already subdued consumer confidence.
Buyers face reduced maximum loan sizes, with the cumulative rate rises since February estimated to have cut a median-income household's borrowing capacity by $90,000 or 9%. Sellers in the capital cities are waiting longer to transact and accepting larger discounts, while tenants are experiencing some moderation in rent growth, with the national quarterly increase slowing to 0.5%.
Official statements: Cotality
Reporting: The Nightly
Written by Pick & Scroll News from the reporting and documents linked above.
