Homeowners are discounting their home price expectations to sell

Although some unique homes continued to beat price expectations, they were now the exception, he added.

In Sydney’s inner west, homes sold at an average discount of 11.2 per cent in the Marrickville, Sydenham and Petersham region. Prices fell more than 8 percent in suburbs like Ashfield, Strathfield, Leichhardt and Balmain.

Matthew Hayson, director of CobdenHayson, said private tract home sales were a minority in his market. Most of the houses were still listed for auction campaigns.

“I see auction guidelines being lowered, and I see drops of 10, 15 and even 20 percent in some cases,” Hayson said, particularly for grade B and C homes.

Charging

While some sellers had inflated expectations, it was also a challenge to price a property in a rapidly changing market, he said, as prices continued to drop during a sales campaign.

Buyer’s agent Henny Stier, co-founder of OH Property Group, said price reductions increased on the North Shore.

“We have noticed a lot of price reduction emails, they are flooding my inbox… I have half a dozen of [Monday],” she said.

“Those are from vendors [who were] in 2021 mode, but potentially also agents who have priced higher potentially to win business.”

The sale price of an entry-level Lindfield home recently fell from $3.5 million to $3 million after a week, Stier noted. Such a drop had become common and some properties were seeing multiple price cuts.

Vendors in the Lane Cove and Chatswood region cut prices the most, taking an average discount of 9.5%, the data shows, followed by vendors in the North Sydney and Mosman region (down 8, 3% less) and the Hornsby region (7.9% less). ).

Grade B and C homes had the biggest reductions, Stier said. However, reduced borrowing power meant that many buyers had to make further concessions in their property search.

Seller satisfaction has been slipping as prices fall, with a drop in the number of owners who sold at or above the expected price in the last quarter, separate figures from RateMyAgent show.

In Sydney, about 26 per cent of sellers were satisfied with the price they achieved in the June quarter, up from 38 per cent a year earlier, the agent ratings and reviews website found.

RateMyAgent Chief Executive Michael Davey said the results reflected inflated expectations from sellers, which were lagging behind rapid price declines.

Charging

“They looked at what people were achieving over the last 12 to 18 months when the market was up, and I think that has created a level of anticipation,” he said.

He expected satisfaction levels to fall further in the coming months, as a higher cash rate and a possible rise in prices in the spring would put further downward pressure on prices.