As home values have fallen across most parts of Australia over the past 12 months, the time it takes to sell a property has also increased.
This week we take a look at those regions (based on local government areas nationally) in which the time on market has recorded the greatest increase over the year.
As the housing market has transitioned out of a growth cycle over the last year and values have fallen across most regions, vendors have found it increasingly difficult to sell their properties. The amount of stock available for sale has risen to record highs over the year, vendor discounting levels have increased and the negotiation process has taken longer and subsequently the average time on market has risen across most regions.
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This week we are taking a look at those council areas across the capital cities and the regional markets that have recorded the largest increase in their average time on market over the 12 months to October 2011.
Across the capital city markets, the premium housing market of Mosman Park on the shores of the Swan River in Perth has recorded the largest increase in the average time on market for houses over the past year. The average time on market in Mosman Park has increased by 59 days and is currently recorded at 123 days.
Premium housing markets in Perth feature quite heavily amongst those suburbs that have recorded the greatest increase in average time on the market over the year. This result is due to the very weak performance of the premium housing market in that city, with few buyers and lots of homes available for sale.
Cottesloe which is an inner city region of Perth and Sorrell in outer Hobart have both recorded the greatest increase in their average time on market for units over the year. Across both regions, the average time on market has increased by 74 days over the year.
A large number of regions within Perth feature on the list for units as do most council areas within Hobart. Within the other capital cities it is typically unit markets within the outer suburbs that have recorded the greatest increase in time on market.
In regional areas of the country, Plantagenet in South-West Western Australia has seen the greatest increase in the average time on market for houses. The average selling time in the region has increased by 123 days over the last year and the Plantagenet council area also has the highest average selling time for houses of all Australian council areas at 235 days.
Regional areas of Western Australia, South Australia and New South Wales account for the vast majority of council areas highlighted.
The Central Coast council area on Tasmania’s northern coastline sandwiched between Burnie and Devonport has recorded the greatest increase in the average time to sell for a unit over the year. Units are typically taking 166 days currently and the time it takes to sell has increased by 104 days over the past year.
Across the regional areas of the country, seven council areas in both New South Wales and Victoria have been amongst those to record the greatest increase in average time on market followed by six in South Australia.
Overall the results are quite varied, in the inner areas of each capital city have often recorded some of the largest increases in the average selling time. This reflects the broad trend of premium housing markets recording weaker conditions than lower priced markets. In regional areas, although coastal markets have been the weakest performers in terms of value growth, these markets have generally been underperforming for some time and in many instances have not recorded a substantial increase in time on market over the past year.