More time on the market a window for home buyers?

A man opens the curtains on a window as warm sunlight streams in

New data from Domain reveals the cities where properties are spending the most time on the market, indicating the past year’s FOMO-fuelled competition has subsided.

In October 2021, when interest rates were in a pandemic-induced lull, the average number of days on the market for houses and units was lowered by increased demand in all capital cities (except for Hobart), compared to the same time in 2020. 

One year later, in October 2022, an environment of higher interest rates and spiking inflation quelled demand, according to Domain’s Dr. Nicola Powell. 

“Days on market is a good indication of the balance between supply and demand of property,” she said. “While the days on market have gone up compared to this time last year we need to remember that there was extraordinary demand last year, creating high levels of competition and pushing down days on market. 

“While increasing interest rates and inflation have tempered demand, the current days on market are still lower than the previous five-year average for this time of year (apart from houses in Hobart). Many sellers can expect a sale provided they are meeting market price expectations.”

Where are properties staying on the market the longest? 

Domain’s data looks at the average number of days on the market in the capital cities each October for the past four years.

Source: Domain. Data representing the average number of days on the market for homes and units in each capital city over a four year period from Oct. 2019 to Oct. 2022.

Houses in Canberra, Hobart, Melbourne, and Sydney all recorded longer days on the market in 2022 than the previous year. However, those looking to buy a house in Adelaide, Brisbane, Darwin, and Perth are likely to encounter shorter average days on the market than last year.

When it comes to units, Hobart, Melbourne, Perth and Sydney recorded longer average days on the market this year compared to the last. But for those looking to purchase a unit in Adelaide, Brisbane, Canberra, or Darwin, the average days on the market have all gotten shorter compared to October 2021.

With longer time on the market indicating less competition, the opportunity presented to home buyers is that of the luxury of time. 

When properties aren’t being snapped-up swiftly, prospective buyers are able to take their time deciding on a property, rather than being pressured into a quick sale.

Buyers might have a chance to research home loans too

In a competitive housing market, home buyers need to be quick on their feet when securing a home loan approval

In fact, recent surveys suggest that Australians often take the first home loan they’re offered, with most spending less time researching home loans than their phone plans

Given the competition seen in the housing market last year has cooled off somewhat, it stands to reason that Australians might be able to take their time comparing home loans instead of clutching at the first one which comes their way. 

For more tips and tricks to getting into (and surviving) the property market in Australia, check out our home loan guides section where you can get the answers to some of your questions. To stay up to date with the latest information and developments in the world of property, have a look at the latest home loan news.