smh.com.au
Australian Housing Market: Overpriced Listings Cause Delays
Nationally, old home listings (over 180 days) in Australia increased by 6.7 percent in August 2024 compared to the previous year, primarily due to sellers overpricing their properties, while new listings decreased slightly in major cities like Sydney and Melbourne.
- How are buyers responding to the increased number of older listings?
- Buyers are demonstrating savvy negotiation skills, taking advantage of the increased selection of older listings. However, the reduction in new listings indicates a potential tightening of the market for properties under 30 days, as Sydney and Melbourne saw decreases of 0.6 percent and 1.3 percent respectively in August 2024 compared to August 2023.
- What is the primary cause of the increase in old home listings in Australia?
- The primary cause is sellers overpricing their properties, exceeding market value. This is supported by a 6.7 percent national increase in listings older than 180 days compared to August 2023, with even higher increases in Sydney (22.1 percent), Melbourne (13.7 percent), and Canberra (64.3 percent).
- What advice is given to both sellers and buyers navigating this market dynamic?
- Sellers are advised to set realistic pricing expectations and be wary of agents overpromising sales prices. Buyers are encouraged to thoroughly investigate older listings, including reviewing comparable sales, obtaining building and pest inspections, and seeking contract review to ensure value and avoid potential property issues.
Cognitive Concepts
Framing Bias
The article presents a balanced view of the real estate market, highlighting both the challenges faced by sellers with overpriced properties and the opportunities available to savvy buyers. The inclusion of multiple expert perspectives (real estate agents and a market research firm) contributes to a well-rounded narrative. However, the repeated emphasis on overpricing as the primary reason for properties languishing on the market might slightly overshadow other contributing factors, such as the overall market conditions or specific property characteristics.
Language Bias
The language used is largely neutral and objective. Terms like "hopeful vendors" and "savvy buyers" are mildly descriptive but don't carry strong negative or positive connotations. The use of statistics and quotes from experts further enhances objectivity. However, phrases like "got ahead of themselves" and "overpromised" might subtly carry a judgmental tone.
Bias by Omission
While the article provides a comprehensive overview of the current market situation, it could benefit from including data on interest rates and their impact on buyer behavior. Additionally, a broader geographical scope beyond Sydney, Melbourne, and Canberra might offer a more complete picture of the national market trends. The article focuses on the higher end of the market with little discussion of the more affordable housing.
Sustainable Development Goals
The article highlights issues in the housing market where pricing expectations are misaligned with market realities. While not directly addressing SDG 10 (Reduced Inequalities), the situation indirectly impacts it. High housing prices exacerbate inequality, making homeownership inaccessible for many. Addressing unrealistic pricing can promote a more equitable housing market, making homes more affordable and accessible for a wider range of people. The resolution of the housing market imbalances could indirectly contribute to more equitable access to housing.