Massive increase in appraisals will prove a springboard for real estate market
Media release - 21st August, 2015
With spring just two weeks away, statistics from Raine & Horne indicate that many Australians are considering a property sale before Christmas.
“Our figures indicate a 63% increase in appraisals nationally compared to this time last year, and it indicates that more Australians are considering the sale of a property,” says Angus Raine, Executive Chairman, Raine & Horne.
“At the same time, we’ve also seen a modest decline in listings, of minus 1%, compared to last August, which indicates that we still have some way to go before more Australians believe we have hit the selling sweet spot and they actually put their properties up for sale.
“This indecision is understandable, as many home owners are telling our offices that they’re worried that if they sell, they may not be able to buy back a suitable next property due to price hikes or a shortage of stock.”
In spite of owner hesitancy, Mr Raine is confident that listing activity will collect speed very soon, as people always need to sell property whether it’s to downsize, upgrade, or for a work or lifestyle change.
“It’s the calm before the storm, and while extra properties for sale will test the strength of markets across Australia, buyer demand, particularly in Sydney, is very deep, and should underpin long-term prices,” says Mr Raine.
“Looking ahead to Spring, with an auction clearance rate of around 80% in our region, we believe the market is bound to stay strong until the end of 2015,” says Mr Goldman.
“We attribute the strength of our market to Australia’s all-time low interest rates and an influx of buyers from around the world who are taking advantage of the lower Australian dollar.
“Our view is that low interest rates coupled with the falling dollar will even take the sting out of the decision by the Australian Prudential Authority (APRA) to enforce the banks to cut back on current lending levels for investment properties in the short-term.”
“If more owners take the plunge to list, it will create a pool of properties for sale – and market activity will pick up as these people also become buyers looking for their next property,” says Mr Yeates.
“Activity may collect pace once the calendar flips across to September or we see a group of vendors take the plunge and put their homes up for sale.
“However it is worth noting that any trophy property that currently hits the market in our patch is being snapped up, so the demand is still there even in late Winter.”
The lack of stock, coupled with fewer registered buyers at auctions, will result in more moderate price growth for the remainder of 2015, according to Mr Yeates.
“Given some of the competing factors holding things up on the demand and supply sides of the property equation, growth of 5% is most likely between now and Christmas. This is still a pretty decent outcome,” says Mr Yeates.
“We don’t have enough listings but if we have a quality, well-located rental property, savvy investors are snapping them up fast,” says Mr Turner.
Meanwhile the owner-occupier market is picking up in suburbs such as St Marys, St Clair, Werrington and Mount Druitt, a trend demonstrated by the sale of a 3 bedroom house at 7 Robinson Street, Minchinbury, for $690,000.
“A property such as this would have sold for around $610,000 at Christmas last year.”
Mr Turner believes factors such as St Marys’ proximity to the future airport at Badgerys Creek, which is already creating jobs, plus the area’s housing affordability, are driving owner-occupier demand.
For further media information contact:
Angus Raine, Executive Chairman, Raine & Horne on 0409 920 697
Andrew Harrington, National Communications Manager, Raine & Horne, on 02 9258 5400