Jan Grainger has been trying to sell her Fullarton home for months. Picture: Bianca de Marchi
Source: The Advertiser
HOUSE prices are being slashed by tens of thousands of dollars as a slow property market swings the buyer’s way.
The latest RP Data September suburb scorecard reveals Adelaide’s vendor discount rate – the difference between the original asking price and the current price – is about 7 per cent.
The median dwelling price in Adelaide is $380,000, meaning vendors are discounting at an average of about $26,000.
One owner at Fitzroy has reduced his asking price by $300,000 to $2.5 million since the home was listed in May. The 1880s four-bedroom sandstone and redbrick home with 10 rooms, tennis court and swimming pool is on a 2071sq m block.
Klemich Real Estate agent Judy Morris said the property market was patchy.
“Some are able to get the price they want but others are having to reduce to get a sale,” she said.
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“People are very cautious. Some houses are staying on the market longer.”
Jan Grainger is selling her three-bedroom, two-storey residence in Martens Avenue, Fullarton, and has dropped the asking price by $60,000 to $790,000 since it was first listed in January.
“It’s been on the market for nine months now and the way the economy is at the moment it wasn’t even getting a look-in at open,” she said. “My partner and I came to the conclusion we needed to drop the price.”
A West Lakes home has been discounted by $250,000 and a Hyde Park home’s price has reduced by $150,000. The average Adelaide home stays on the market for 53 days. Real Estate Institute of SA president Greg Nybo said that was causing the discounts.
“Adelaide has seen a reduction in volumes of transactions and clearly a lot of vendors are having to review the price to get off the market and get on with their lives,” he said.
“I think we are coming into what we would probably call a traditional South Australian marketplace.
“We’ve come out of 10 quite spectacular years. It’s the old adage. What goes up eventually comes down.”
Mr Nybo said reducing the price of a home did not spell disaster for the vendor. “If they are reducing the sale price of their home they still are buying in the same market,” he said.
Property website REFind shows there were 644 property price reductions in SA in the past seven days.