Patience Running Thin: Days on Market Soar as Vendors Face Reality Check

For the first time in nearly three years, Melbourne vendors are staring down an uncomfortable truth: their homes aren't selling as quickly as they'd hoped, and the gap between asking and achieved prices is widening noticeably.

Data from recent auction cycles shows properties across the metropolitan area are now sitting on the market for an average of 34 days before selling—up sharply from the 22-day median seen in mid-2024. In some pockets, the trend is even more pronounced. Bayside suburbs including Sandringham and Brighton are averaging closer to 40 days, while established inner-ring localities around Camberwell and Toorak are hovering near 38 days.

The shift reflects a market cooling from its fever-pitch highs, though Melbourne remains far from distressed territory. Real estate agents working across Frankston's growth corridor report a similar pattern: solid buyer interest, but less frenzied competition and more room for negotiation.

Where the pressure is most acute is in vendor discounting. Properties listed at or above the $900,000–$1.1 million range—Melbourne's most crowded price bracket—are increasingly seeing final sale prices sit 3–5 per cent below asking, compared to the 1–2 per cent haircuts common twelve months ago. Units in new apartment developments near Southern Cross Station and along St Kilda Road have proven particularly susceptible, with some off-the-plan projects now attracting modest concessions from developers keen to shift stock.

Interestingly, price-sensitive segments tell different stories. Properties under $700,000 continue to move briskly, with days on market remaining stable in the 18–24 day range. The Frankston-Carrum Downs corridor, where median values sit well below the metro average, remains a bright spot for vendors seeking swift sales. At the other extreme, trophy homes in the $2 million-plus bracket are moving slower but without meaningful price concessions—suggesting that ultra-premium buyers remain unbothered by market timing.

Real estate professionals attribute the slowdown to interest rate fatigue and buyer caution ahead of what many expect could be an RBA decision point later this year. Yet auction volumes remain elevated across Melbourne, suggesting vendors aren't panicking just yet.

The message for sellers preparing to list: extend your timeline expectations, price realistically from day one, and resist the temptation to chase last year's valuations. For buyers willing to wait, the shift is handing back a degree of negotiating power not seen since early 2023.

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