Over the 12 months to June 2016, the typical Australian house has taken 46 days to sell and the typical unit has taken 43 days to sell. A year earlier these figures were at fairly similar levels with houses typically taking 45 days to sell and units 41 days. Taking a look at figures across the country’s council regions it is clear that the rapid rate of sale is largely being driven by our most populous capital cities, Sydney and Melbourne.
Looking at the list of council areas that have recorded the fewest days on market for houses, council areas of Sydney and Melbourne dominate the list. In fact, no council areas outside of New South Wales, Victoria, Western Australia and Tasmania even make the list. Somewhat surprising is that the Hobart council area has seen houses sell quicker than anywhere else in the country at just 18 days over the year. Of the top 25 council areas listed only Wollondilly, Wollongong and Shellharbour are situated outside of a capital city.
The unit market is generally showing quite similar trends to the detached housing market. Again, the list of the top 25 council areas for fastest selling times is dominated by Sydney and Melbourne. In fact, there are only two entries on the list outside of New South Wales or Victoria and only one entry (Horsham) which is not within a capital city region.
Based on these tables it becomes clear as to why home values have been increasing at a much more rapid pace in Sydney and Melbourne than they have across the rest of the country. Heightened demand has increased competition for stock and resulted in sales occurring at a much more rapid pace. More recently housing demand has started to slow and we would expect that over the coming year, in Sydney and Melbourne in particular, homes will start taking longer to sell. Conversely, markets like Hobart and potentially South-East Queensland along some larger regional markets may see their days on market figures fall as demand increases in these markets as it slows in Sydney and Melbourne.