The largest drop in sales, and the highest discount on house prices in regional Australia have been recorded in the Highlands, new data has found.
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CoreLogic's November Regional Market Update revealed house sales dropped in the last 12 months to August, by 27.5 per cent, and prices were reduced by almost five per cent.
These statistics are also applied to Shoalhaven, as both areas are grouped together in the report as one region.
![CoreLogic's latest Regional Market Update has found the Southern Highlands had the largest drop in home sales in the last year. Picture by Shutterstock. CoreLogic's latest Regional Market Update has found the Southern Highlands had the largest drop in home sales in the last year. Picture by Shutterstock.](/images/transform/v1/crop/frm/123048163/1d2a62ca-84b7-4699-85ea-96137b345961.jpg/r0_0_1020_678_w1200_h678_fmax.jpg)
The property data, information and analyst service's economist Kaytlin Ezzy, said factors such as rate hikes, inflation and economic uncertainty have influenced the drop in sales.
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"Another factor which has likely impacted recent sales activity across the Southern Highland and Shoalhaven, is the strong value growth seen over the COVID period," she said.
"With house and unit values rising by approximately 60 per cent and per cent, respectively, the relative affordability that the regions once offered has largely been eroded, causing some buyers to look for more affordable housing options in other regions."
The report documented that house values declined in both regions by 7.1 per cent, between July and October this year.
When it came to discounts, Ms Ezzy said "negotiating power was skewed strongly to the seller's side" at the beginning of the pandemic, where there was a higher demand, and low interest rates.
This meant properties were rapidly purchased, even when vendors did not offer discounts, but this has since shifted.
"As the market has transitioned into a downturn throughout the year, negotiating power has steadily shifted back in favour of the buyer, with many becoming more hesitant amidst rising interest rates and falling property values," she said.
"The net effect of this shift is that compared to last year, properties are taking longer to sell, and vendors are having to offer up larger discounts in order to meet the market."
Properties in both regions have also spent longer on the market in the last 12 months.
For houses, it has grown by a week to a median time of 39 days, and from 36 to 38 days for units.
A breakdown by local government area, however, shows that 37 days was the average amount of time for a house to be on sale, and 31 days in the Wingecarribee Shire.
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