More than half the properties changing hands in some regions of Sydney and its surrounds are trading for below the list price, new analysis shows. 👇
There has been wide variance on how final prices and list prices compare.
It’s a reversal of the conditions seen during the height of the pandemic when FOMO, or the fear of missing out, was rife among buyers and most properties sold for well above the asking price.This was especially true in regions popular with sea-change and tree-change buyers, which boomed in 2021 and early 2022 but now appear to be among the areas where buyers can play hard ball in negotiations.
“The average borrower has seen their borrowing capacity decrease by 30 per cent since rate hikes began,” she said. “In growing markets, sellers tend to underestimate their property’s worth, but in falling markets it can be the opposite … this data shows expectations need to change.” About 38 per cent of northern beaches properties traded at prices above those listed, but a dive into recent sales showed most properties getting higher than expected results were cheaper units.“There is a lot more competition at the bottom end of the market because that’s where interest rate rises have pushed a lot of buyers,” said Mortgage Choice broker James Algar.
Buyer’s agent Michelle May said being able to get an offer accepted at under the list price depended heavily on the type of property being sold.
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