Why Do Some Sydney Properties Sell Faster Than Others?

New home listings are selling more quickly, according to realestate.com.au data, which shows ‘days on market’ shrinking to new levels.

We take a look at why this metric matters, and analyse what it means for Sydney’s inner city and inner west.

Why is ‘days on market’ an important property metric?

Days on market is the number of days a property takes to sell (or lease, if we’re talking about rentals). It’s typically measured from the day the property is listed on a property website, such as Domain or realestate.com.au, until it is sold.

For an individual property, it reveals how fresh - or stale - a listing is. Has it been snapped up super fast, or is it languishing for months unsold?

Days on market is also a reasonably reliable indicator of the state of the wider property market. The lower the average number of days on market for a suburb or city, the more competitive the market is.

Days on market is an important metric for sellers in particular, because homes typically spark the most interest when they’re first listed.

If a property stays on the market for many weeks or months, buyer interest (measured by emails, phone calls, open home numbers, etc) tends to fall. That’s usually because most people looking for a home would have already seen the listing or property.

At this point, the property’s potential new buyers arrive in lower numbers as they enter the market one by one. This can become a vicious cycle, where some buyers are suspicious of a property that has spent too long on the market, wondering what might be wrong with it, and why it hasn’t sold.

What factors impact days on market?

Average days on market can be impacted by many things, but the property market itself is a key factor in determining how fast a property sells. Generally, when the market is strong, days on market decrease; and, when the property market dips, days on market can rapidly increase.

But this doesn’t explain everything, as other factors are also involved:

• The home itself. Properties that are popular (e.g. apartments with something “extra”), or in short supply (e.g. large family houses), tend to sell faster than others.
• Location. Properties in a great location tend to sell faster. This includes those close to amenities and services like schools and shops, and those on quieter or more desirable streets.
• Presentation and styling. Well-presented and beautifully styled properties often attract more interest, which can decrease their days on market, and speed up a sale.
• Advertising. A good marketing campaign (with great photography, copywriting and potentially even video) that is tailored to the property’s strengths can attract attention and build fear of missing out (FOMO) among buyers, leading to a faster sale time.
• Desirable features. Properties with certain coveted features (e.g extra large block sizes, home office, extra parking, heritage listings, energy efficient features, or a swimming pool) - often sell faster than those without.
• The season. Days on market can be impacted by the time or year or season (ie: Spring, Winter, Summer, Autumn), as there are typically more buyers (and properties for sale) in Spring and Autumn.
• Vendor price expectations. Sometimes properties don’t sell because the owner has unrealistic expectations around pricing. Known as the “emotional tax”, research shows that homeowners overestimate their property’s value by an average of 8%. Sellers who fall victim to this can hold out for a higher price, which can lead to the property remaining on the market for longer.

Changing trends in days-on-market

Figures from realestate.com.au show the impact the COVID-19 pandemic and higher interest rates have had on days on market.

Pre-pandemic, most new listings on realestate.com.au took over 60 days to sell. However, after the pandemic hit, demand grew, and by the end of 2020 most new listings were selling in under 60 days.

This continued during the unprecedented growth of the property boom over 2021.

During 2022, as interest rates crept higher, buyer demand decreased, and more listings spent over 60 days on the website.

Then, in 2023, as interest rates stabilised and buyer confidence gained momentum, the situation reversed again.

Right now, low stock levels and stable interest rates contribute to most properties selling within 60 days.

Realestate.com.au’s data also proved that if a property has been on the market a long time, the chances of selling decrease significantly and, the longer the days on market, the less likely a property is to sell at all.

What are the average days-on-market for properties in Sydney’s inner city and inner west?

Nationally, the median time on the market was 31 days in the three months to May 2024, a figure that is in line with last year. City-wide, Sydney has a median of 32 days on market.

Different property types sell at different speeds. So in Erskineville, houses sell in 46 days, but smaller houses sell faster, with two-bedroom houses selling in an average of 24 days. Meanwhile, Erskineville apartments take 54 days to sell.

Here’s a breakdown of median days on market in some of our key suburbs:

Want more?

If you’re interested in buying or selling in Sydney’s inner city and inner west, get in touch.