Melbourne suburbs see homes selling under market prices

Home buyers in Melbourne are finding the best discounts in wealthy suburbs. Houses in these areas are selling for nearly 10 percent below the sellers' asking prices. Specifically, homes in the Stonnington region are selling for 9.5 percent less, while Yarra follows closely at 9.4 percent. The Mornington Peninsula and Boroondara also show significant discounts, at 9.3 percent and 8.4 percent, respectively. These figures come from private sales over the last six months and exclude units. The luxury market in Melbourne has been struggling, although recent cuts to the cash rate seem to have encouraged some buyers to return. Many homes are often listed for auction, but those that don't sell can end up being relisted for private sale. This can lead to deeper discounts, as explained by Domain's research chief, Dr. Nicola Powell. Dr. Powell noted that sellers often have unrealistic expectations about their home's value. As the market shifts, sellers are slowly aligning their asking prices with what buyers are willing to pay. While prices aren't rapidly changing, the steady market allows for more realistic pricing. Top buyers’ agent, Emma Bloom, has seen similar trends. She mentioned a vendor in South Yarra who rejected a $7 million offer six months ago and recently sold for $6 million. Another vendor in Malvern had to lower the price from $4.2 million to $3.9 million after a previous sale fell through. Buyers are now more cautious and informed, making them hesitant to commit. In the Mornington Peninsula, there are varying market trends. While areas like Portsea are seeing fewer homes for sale, more sensitive areas like Rye are experiencing an increase in listings. Vendors in these areas must be more competitive with their prices. Kyla Kirkpatrick, a property investor, recently bought a property in Prahran and is considering more investments in premium areas like Brighton and South Yarra. She has noticed more sellers moving from auctions to private sales, indicating a willingness to negotiate due to financial pressure. Kirkpatrick believes that the current climate offers great opportunities for buyers to negotiate better deals.