Spring is the most active period of the property year and no single month is more active than October. This year is no different with a very high level of new listings come onto the market. What is unusual and significant, is the slow-down in sales volumes. This fall-off in sales now places the local Devonport market firmly in the category of a ‘buyer-market’. There’s ample choice for buyers, who now wield power to select and negotiate; this presents a significant challenge for sellers as the competition for buyer attention is tough and their negotiation power is slipping away.
Over the past 3 months, 77 new properties have come onto the market. This has been offset by a sales total of just 40 properties, pushing available inventory to the highest level of the year – at the end of October buyers had a choice of 57 property options from which to choose. By comparison at this time last year buyers had just 37 properties as options to buy a rise of 50% in available inventory.
Sales volumes which had held up well through the winter months showing single digit percentage increases through the first half of the year, have now slowed significantly with a fall of 9% compared to the same time last year.
The specific sector of the market made up of family homes as separate from units and apartments is not immune from this change in the market. Sales volumes are down 6% with just 29 sales of houses in the prior 3 months, well down from a figure of 51 in the final months of autumn, showing clearly how much the market has slowed.
As the sales volume has slowed, so has the median price which whilst stubbornly refuses to decline, remains flat as it has been for the past 3 months. The current median price of $1,600,000 is identical to this time last year, but has fallen significantly over the past 6 months since hitting $1,890,000 at the end of autumn.
This segment continues to weaken with sales down 11% and median price down 16%. The tracking of this market for owner occupied and investment properties is now entering its 15th month of consecutive declines with just 8 sales of units in the past 3 months. With 14 new listings ,the market is not denuded of stock however buyer interest appears to be cautious and somewhat picky.
The median price over the past 3 months at $730,000 is down by a whopping $170,000 as compared to the peak of the market back in 2016 and at this time shows little signs of appreciating anytime soon.