Buyers bidding over asking price increasing, FHBs holding back

New research has found that sellers are increasingly willing to pay more to secure the property they have their sights set on, with those willing to offer or bid about the reserve price of a property ticking upwards.

A realestate.com.au 2013 Consumer Insights Report on Buyers and Sellers has found that 41% of buyers who placed an offer on the property did so at more than the asking price, up from 23% in 2012.

Meanwhile, 52% of buyers who bid at auction bid more than the reserve, compared to 36% in 2012.

There has also been a shift in buyer profile to the higher end of the property market, with an uptick from 30% to 39% of those looking in the $500,000 to $1.5 million bracket, and the number of those buying under $400,000 decreasing over the last 12 months from 49% 10 38%. This is typically the first home buyer bracket.

Nearly a quarter of vendors would only accept or consider offers above their asking price.

Realestate.com.au general manager of sales and operations, Arthur Charlaftis, said that the research indicates investors are surging in the market.

“With low interest rates and a limited number of properties available, 49% of buyers believe that property prices will continue to increase in the next six months, so if you’re considering selling, it’s a great time to take action. This is a significant increase in market confidence from 2012 when only 16% of Australians believed property values would continue to rise," he said.

Of sellers, 31% believed property values will increase between 5% and 10% over the next six months.

jduke@propertyobserver.com.au

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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