December 1, 2022

The Australian love affair with property continues.

Welcome to our Summer Market Report

Author: Manos Findikakis, CEO & Co founder of the Agents’Agency

Australia’s premier network of independent agents.

Why list with one agency when you can reach more buyers by listing with a network of agents.

More on that a little later.

There wouldn’t be a headline today that wouldn’t dispute the incredible momentum the property market has had over the last 24 months.

But what about the current slowdown?

According to the latest core logic report there are currently just over 90,000 thousand properties currently listed for sale across Australia, of which 25,535 were listed and came to market in the last 30 days.

Comparing that to this time last year, that’s a 31% drop on listings coming to market in November, that is a significant decrease of almost 1 in 3. and an overall reduction of listing volumes by 10%.

Days on market have increased to over 4 weeks on average, more in line with pre pandemic conditions

When it comes to pricing, we’ve seen variations from 5% to up to 12.5% adjustments across our network from the peak this time last year. Properties are still selling well above pre-pandemic averages.

So what’s the prediction for the next 12 months and beyond?

Will momentum build, or will it subside?

Will prices end up rising, flatten or reverse?

As real estate agents who are continually at the coalface of the transaction between seller, buyer, rental providers & rental occupiers, we are in an extremely fortunate position to sense the mood of the market well before any statistical data presents the true story.

Noting that ‘property data’ is after the fact, not prior, we have the advantage of analyzing both.

I have a philosophical view point for those who are traversing the current (or any cycle for that matter) property market; in whatever capacity, buyer, seller, investor or occupiers.

In the first instance, I believe trying to ‘predict’ the market is a dangerous strategy on its own. To be able to make an informed decision, I like to apply the following fundamentals to help in the decision process.

Australians have an absolute love affair with property.

This gives me strong confidence that our appetite will continue well into the future and whilst we may see variations in strength, property will continue to feature high on the ‘want’ lists of your every day Australian. We all need shelter to live in and we are a lifestyle an aspirational society.

Aussies love to move!!!!!

Interest rates have risen and likely to rise further to curb inflation, but that just signals people still have the appetite to continue spending.

Unemployment. This one for me is the big one because regardless of interest rates being high or low, if you don’t have a job, you cannot get a loan. Unemployment is at record lows.

Population growth. Australia is a growing country and immigration adds further pressure to the property market and adding to demand. It’s predicted that we will be at a population of over 35 million by mid century.

So what to do.

The fundamentals are the fundamentals.

If your plans are to upsize, now is the time to do it. Changeover costs have never been more affordable.

If your looking to downsize, there will be more to choose from as stock levels increase early next year.

If you’re looking to purchase, it’s highly likely we are at the bottom of the market.

If you’re thinking of selling and want to maximize your result, remember the fundamentals.

Presentation; go all out and make your property stand out ‘like a display home.’

Promotion – you can’t sell a secret so get it out there like Richard Branson.

And of course, pricing. Price it competitively so that you can attract the right buyer and create an environment of competition.

And lastly, reach out to one of our Agents’Agency network partners to help you with all your real estate needs.

Why list with one agency when you can reach more buyers by listing with a network of agents.