The ongoing slowdown in the housing market is affecting the eventual prices properties get sold.
A new study by property software platform Openn found that only around a third of residential properties are sold for a price within 10% of a model price estimate in February.
Of all states, Tasmania had the highest share of sales below price expectations at 70% while South Australia recorded the biggest share of properties sold above expectations at 17%.
According to Openn, the share of sales falling for a price within 10% of estimate should be at 45% under normal market conditions. Any results below indicate a disconnect between buyer demand and seller expectations.
Openn managing director Peter Gibbons said agents and property sellers face challenges in estimating the current market due to uncertainties.
"Unfortunately, many of the free estimate tools used by agents and sellers to help set prices are not keeping pace with market conditions and buyer demand,” he said.
“In these circumstances, digital sales processes that allow buyers to compete transparently until true market value is achieved can be really powerful.”
Here’s how sales markets in each state performed in February:
|
State |
Share of properties sold (%) |
||
|
Sold within 10% of price expection |
Sold below price expectations |
Sold above expectations |
|
|
New South Wales |
33 |
57 |
10 |
|
Victoria |
36 |
54 |
10 |
|
Queensland |
29 |
60 |
11 |
|
South Australia |
35 |
47 |
17 |
|
Western Australia |
51 |
36 |
14 |
|
Tasmania |
29 |
70 |
1 |
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Photo by 89Stocker on Canva.
