There’s good news for property sellers and less good news for anyone trying to buy, as the latest CoreLogic data reveals price points you’re more likely to see.
Depending on where you’re looking to buy, house and apartment prices hit all sorts of ranges, with many of them being higher than you’d probably like. But while you can get a general guide from a real estate agent on what the expected price is, the sale price is sometimes very different.
These days, you can expect to push a bit of a discount to drive that price down just a little, but don’t expect it to drive down the amount you’ll have to take out on those home loans, at least too much.
Research out of CoreLogic this week suggests that over the 2018 calendar year, property prices under the hammer generally didn’t go for below $200,000, achieving much higher results across the board.
In fact, while 6.1 percent of properties were sold nationally for under $200K, 24.8 per cent were sold between $200,000 and $400,00, 28 per cent between the $400,000 and $600,000 mark, and 18.7 per cent in the next price bracket of $600K to $800K. Perhaps most interesting is that properties sold above the $1 million mark achieved a little over twice the volume of below $200,000, with 13.8 per cent sold over a million.
According to CoreLogic, this is a drastic change from the state of affairs over the past couple of decades, with December 1993 and 1998 revealing higher sales in the bracket below $200,000, while the $200,000 to $600,000 price points started taking off from December 2008 onwards.
That’s potentially good news for those keen to sell, though given the price falls occurring in parts of the market, the question is for how long.
“Over the past five years there has been a clear shift towards a greater share of sales at higher price points,” said CoreLogic’s Cameron Kusher.
“While you’d expect this in the markets that have seen strong value growth such as Sydney, Melbourne and Hobart, we have also seen it across markets where value growth has been much weaker. Values are currently declining fastest across the more expensive properties, and over the coming year we would expect to see the share of sales over $1 million to reduce as values continue to fall,” he said.
“As a result, we’d also expect slightly more sales occurring at lower price points, we don’t expect any material change in the share of sales under $200,000, in fact they may reduce further.”