If you are looking for a property bargain – now is the best time to find one or many.
According to new research by RP Data, property sales volumes have been in decline since September 2009. At the same time, vendors who need to achieve a sale of their property are forced to offer fairly significant price discounts.
In February 2011, the volume of real estate sales were 13 per cent lower than February 2010 and vendor discounting had reached 6.5 per cent for houses and 6.6 per cent for units.
Across the Australian capital cities, vendor discounting levels were varied, however RP Data reported that there is a strong trend to indicate that discounting is certainly greater than in the past. The only exceptions to this are Sydney and Hobart.
“If the number of sales processed is in decline and potential capital appreciation in the short to medium term is limited, we have a buyers market. Given this, vendors need to question whether or not selling now is in their best interests. Those vendors that do need to sell must be prepared to accept a lower price.
“For potential buyers, the news is much more positive because home buyers now hold the power and can really begin to negotiate and pick up a property at a reduced price.”