Vendors have been increasingly forced to drop their asking price trying to compete with other sellers while buyers are being able to pick and choose from a bigger range of options.
Domain data shows that the proportion of vendors having to reduce their asking price and more than doubled in Melbourne in the four weeks to October 21.
This reflects the fact that new home listings surged by 82 per cent in Melbourne last month as lockdowns ended.
Jack Henderson is a buyer’s agent at Henderson Advocacy and said November and December were traditionally the best months to buy because other buyers get distracted by the approaching holiday period and sellers are keen to sell before Christmas.
“Buyers generally turn off in the weeks leading to Christmas as they start thinking about parties, trips and kids going on school holidays,” he told Australian Financial Review.
“This year, with the lockdowns easing, people are more interested in going out and catching up with friends and family that they have not seen for months.
“On top of that, there’s a lot more inventory that has come to the marketplace, so all these things have made it a perfect storm to buy better than you would have done two months ago.”
Up in Sydney, buyer’s agent Munro Donen from Propertybuyer East, said in a change of scenario, a lot of vendors were now struggling to achieve their expectations.
“I’m seeing quite a big difference in the price guides the agents are giving and what properties are actually selling for,” he told AFR.
“I think these properties were appraised probably three or four months ago when they signed up for listings, but due to the delays in getting tradies and materials, we’re now at a point where the appraisals are not where they would have been four months ago.”