Published : 6 August 2015
CoreLogic RP Data's latest capital city data - relating to the average number of days it takes to sell a residential property - shows that in May homes were selling at close to their fastest rate on record driven by record sales rates in Sydney and Melbourne.
The average time on market figure is measured by the difference between the initial listing date of a property for sale and the contract date. The figure is valuable because it highlights the rate of sale in a market. If the days on market are short it is typically indicative of a seller’s market where homes are selling rapidly and buyers have little time to ponder a purchase decision. Alternatively, when the average selling time starts to rise, buyers will typically have more scope to deliberate their decision and negotiate on the purchase price.
The latest combined capital city data showed that homes were on average taking 37 days to sell. The rate of sale was close to a record low and across the two largest cities homes were selling at their fastest rate on record at 26 days in Sydney and 32 days in Melbourne. (These figures are focussed solely on private treaty sales and don’t include properties sold at auction).
The suburb level data to April also highlights a rapid rate of sale across certain capital city suburbs.
For houses, Acacia Gardens in Sydney had the quickest rate of sale at just 16 days. The first chart highlights that the suburbs with the shortest days on market have much lower figures in Sydney and Melbourne relative to the remaining capital cities.