Patience Running Out: Days on Market Surge as Vendors Resort to Deeper Discounts

Melbourne's property market is flashing a warning sign few vendors want to see: homes are lingering on the market considerably longer, and those keen to sell are reaching for the discount pen with increasing desperation.

Data from recent sales cycles shows properties in established inner-east suburbs are averaging 35–45 days on market, up sharply from the 18–22 day average recorded in early 2025. In Bayside pockets like Brighton and Sandringham, where competition remains fierce, the trend is less pronounced. But venture into the Frankston corridor—traditionally a migration drawcard—and the picture changes. Homes in Frankston North and Carrum Downs are now sitting for 50+ days before sale, forcing vendors to reassess pricing strategies.

The shift is most pronounced among properties pitched above $1.2 million. In Bentleigh East, where recent sales have attracted significant buyer interest, homes listed at premium price points are experiencing longer campaigns. One local agent reports that vendors pricing $50,000 to $100,000 above comparable recent sales are now accepting that expectation as unrealistic.

"We're seeing vendor discounts of 3–5 per cent from original asking price become the norm rather than the exception," says a spokesman for a leading Melbourne real estate network. "Six months ago, a 1–2 per cent adjustment might have shifted a property. Now vendors need to be more realistic."

The data reflects broader market dynamics. While Victoria's median dwelling price hovers near $920,000 and units sit around $620,000, buyer activity has thinned noticeably. Migration demand—a key driver of recent growth—appears to have plateaued, and first home buyers remain cautious about interest rate movements and entry-level affordability.

Auction volumes remain elevated across Melbourne's winter selling season, but clearance rates have softened. Properties passing in are increasingly being negotiated down post-auction, rather than relaunched at higher reserve prices.

The implications are clear: vendor timing matters more than ever. Those willing to list competitively and accept market-rate pricing are moving stock within 25–30 days. Those gambling on price appreciation or holding out for pre-2024 conditions are watching their homes age in the system.

For buyers, particularly first home owners exploring growth corridors like Frankston or established pockets near parks and transport, the extended selling timeline creates negotiating leverage. Vendors who've waited 60+ days are more inclined to entertain serious offers below asking.

The Melbourne market remains fundamentally sound, but patience—and pricing realism—now separate successful vendors from those watching opportunity slip away.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.