'Fastest start' to a property downturn in 30 yrs, says Domain chief economist | The Business

The heady days of hot auctions are fading with a slow start to the spring selling season. Instead, many sellers are opting for private treaty sales. Domain chief economist Nicola Powell told The Business "I think it does show that sellers are really adapting to the changing market dynamics. It's really challenging under the dynamics of today to create that competitive auction environment and I think what we've got are sellers are listing their homes for auction, they're testing the market and realising the depth of buyers are just not there and they're adapting, they're switching and they're switching to private treaty."

Meanwhile, new figures reveal property values in Sydney and Melbourne markets are down more than 10 per cent from their peaks. "It's actually the fastest start to a downturn that we have ever seen in Sydney and Melbourne when we look at the past 30 years of price data ...But I think we have to remember that there are other capital cities that are behind the price cycle of Sydney and Melbourne. (They) are much further into the downturn than others and we're probably likely to see these markets see deeper price falls than those mid-tier cities of Brisbane, Adelaide and Perth." Nicola Powell said.

Ms Powell said she expects another Reserve Bank interest rate hike, "and that's going to dent confidence a bit further," she said.
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