According to latest reports released by RP Data, property in South Australia is proving harder to sell as homes spend more time on the market.
"While there are many vendors out there who are keen to sell their home, achieving a sale is proving to be an increasingly difficult task, as properties are spending longer on the market," says real estate industry veteran Anthony Toop.
According to RP Data, during March this year in Adelaide, the average time a property spent on the market was 91 days, which is a significant increase compared to the previous two years.
These figures are also well above the combined capital city average for days on market.
"Unfortunately for sellers, this has lead to increased vendor discounting where the difference between the price at which a property is initially listed and the price at which it ultimately sells for has grown considerably," says Mr Toop, Managing Director of Toop & Toop Real Estate. "In Adelaide, vendor discounting has increased by 2%. The remainder of the capital cities have also all experienced a sizeable drop in sales prices.”
There could be relief in sight though as RP Data’s Senior Research Analyst Cameron Kusher believes we may see vendor discounting and time on market soon decrease, as in recent months the amount of stock available for sale has declined and the volume of sales has stabilised.
Toop & Toop have consistently been selling properties between 30% and 45% faster than the average agency in South Australia. “The average days on market for other agencies in our office areas are (1) Norwood 109, we are at 66 average days on market, (2) Hyde Park 90 days, we are at 55, (3) Glenelg 104 we are at 54, (4) Golden Grove average is 129, we are at 95, (5) Stirling 115, we are at 67 and last but not least Victor Harbor at 141 days, we are 136 average days on market,” Mr Toop said.
“Even more telling is the number of agents not achieving sales at all - the pain is real. Rather than leave the sales team to fend for themselves, we are throwing everything at reinventing selling, and backing the team in,” says Mr Toop.
“But until then sellers need to make sure they price their property correctly from the beginning of the advertising campaign as buyers are unlikely to pay above market value. Waiting for the next boom may be a very long time coming, however what we do know is that sales are happening for those who manage to get the marketing, the attitude and the pricing right.”
The issue will be discussed on Toop TV, Toop's weekly online real estate wrapup, this afternoon. Episode 125 will also include:
- Live in the studio, Justin Hazell - President of the Property Council of Australia (SA)
- See inside two of SA's Finest homes, 2995 Strathalbyn Road, Strathalbyn and 28 Walkers Road Somerton Park
- Also follow the virtual tour of 15 Chetwynd Street, West Beach (executive rental) and 21 North Street, Adelaide
To view the complete episode today, Wednesday 16 May, log onto www.toop.tv at 1pm. All past episodes also available online.
Toop Real Estate Group
South Australia’s largest independent residential real estate agency and the most highly awarded in the nation was founded by Anthony Toop. It has become a national icon in marketing and selling in the residential real estate industry having won National Real Estate Agency of the Year in 2007 and is the only real estate agency in the industry’s REISA Hall of Fame. Toop&Toop is also the only real estate agency in the Family Business Association Hall of Fame as an iconic business in South Australia. Founded by Anthony in 1985 has won virtually every major state and national business award since 1993 - and has received recognition both nationally and internationally for achievements in business excellence. In April 2009 Anthony was recognized nationally by the Real Estate Institute of Australia by receiving the nations “Community Service Award” for work done with charities and with the Community. He also received the Young Presidents Organization (YPO) Long Life Leadership regional recognition in December 2008 the “Legacy Honour 2008”.http://www.toop.com.au
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