- Domain issues a monthly Asking Price Edits report
- Houses are currently rising by $1,145 a day in Sydney - or $32K a month
- Relationship has been shown between revised price changes and stronger price growth
More sellers are lifting asking prices mid-way through a sales campaign compared to a year ago, according to Domain’s Asking Price Edits report.
The report is designed to provide unique insights reflecting prospective price growth and market conditions.
According to Domain, house prices are currently rising by $1,145 a day in Sydney and $909 in Canberra. At this rate, capital growth over a four-week sales campaign would result in a $32,060 increase in Sydney and $25,452 in Canberra.
Because of this, more sellers are confident enough to lift asking prices while their property is for sale, according to Domain Senior Research Analyst Dr Nicola Powell.
Back in April 2020, 6.6% of Sydney sale listings increased their asking price mid-campaign. By April 2021, this figure was 9.3%. All the capital cities recorded an increase in the portion of sale listings with an increase mid-campaign.
“During an upswing, particularly through periods of rapid price increases, the anticipated sale price outcome can alter and exceed initial asking-price expectations. This can result in adjusting the asking price to meet the perceived market price midway through a sales campaign.”
Dr Nicola Powell, Domain Senior Research Analayst
Dr Powell added the housing market, however, is clearly not static.
“For buyers, purchasing can become challenging during a period of significant momentum, as competition and prices move quickly, which has been seen to date in 2021.”
“For sellers, receiving a quick or multiple offer(s), especially if above the asking price, can indicate strong levels of competition and be a sign the market has moved upwards from the initial asking price.”
Notably, the more expensive areas of both Sydney and Melbourne recorded the highest price revisions upwards over last month, suggesting the upper end of the market will continue to lead the price growth.
[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]
Does lifting the asking price lead to price growth?
Apart from Brisbane and Hobart, all cities saw a statically strong relationship between lifting asking prices and actual price growth.
“When we see more homes for sale with the advertised asking price revised higher during the sales campaign, it provides an on-the-ground lens of buyer sentiment and level of market competition. It is intuitive that this would then translate into a change in pace of property price growth,” explains Dr Powell.
She added that there would be a slight lag in property price growth due to revised prices – Canberra and Sydney, for example, both saw a one month lag between asking-price hikes and change in price growth.