Fewer Transactions, Fewer Buyers: What is the Market Really Telling Us?

In the areas of the property market I am observing, transactions are scarce, buyer enquiry is subdued and, for some properties, there are few – if any – serious potential purchasers. Vendors’ expectations remain, but the buyers needed to support those expectations are increasingly difficult to find.

This is where the relevance of sales evidence becomes critical. In a falling market, a sale negotiated several months ago may reflect conditions that have already passed. It tells us what a purchaser was prepared to pay then. Its usefulness in establishing what someone would pay today can be limited.

My position is straightforward: reliance should be placed on comparable transactions negotiated within the most recent 30-50 days. Older transactions can provide historical context, but presenting them as proof of current value risks padding an assessment with evidence that no longer reflects the market.

Where there are insufficient recent transactions, that shortage should be acknowledged openly. A lack of evidence does not justify assuming that values have held steady.

The concern is a downward spiral: fewer purchasers lead to fewer transactions, prolonged selling periods and increasing pressure on vendors to reduce expectations. Even a lower asking price may fail to generate a sale when the underlying buyer pool is thin.

At FVG Property, my focus is on what the market can support now: recent comparable transactions, genuine purchaser engagement and the competition a property faces. Where evidence is limited, the assessment must clearly explain that uncertainty.

The question is simple: who is prepared to buy today, and at what price?

To discuss any related property matter herein or other issues, please contact

Mark Ruttner, Managing Director

mr@fvg.com.au 0411 419 674