As we came off the back of Level 2, the real estate market was quick to regain its energy – not dissimilar to what we saw with the retail market – with some suburbs peaking faster than others, depending on the need of the buyers. We believe that this flurry of activity was most probably attributed to the long line of banked-up buyers ‘waiting at the gate’, driven by a real fear of missing out.
That said, Interest rates remain low and the LVR (loan-to-value ratio) is gone – both of which have helped to keep demand for good properties high, especially among first-time homebuyers. As such, prices are holding well across all of the suburbs we operate in, despite speculation by the media that they would drop, once the novelty of ‘being back to normal’ wore off.
Coming into May, we had a healthy backlog of great listings at all levels. However, the combination of a large and sustained appetite from homebuyers, plus a slowdown of new listings coming onto the market, has put sellers firmly in the driving seat. Presently, we have a large number of motivated buyers ranging from first-timers, in particular, right up to $3m-plus buyers looking for family homes in top locations.
Auctions are gathering momentum, both in the number of properties going to market and the activity in the auction room on the night, with plenty of registered bidders for all properties. Also, leading up to the auctions, we had plenty of multiple offers on the table, which provided us with good market information for our vendors to make informed decisions. Although auctions are making a strong comeback, deadline sales remain the preferred method of sales, making up for nearly 80% of sales in the past year.
Around The Suburbs
May saw a return to somewhat of more of a normal market, with sales up 50% on the lockdown months. Year on year, prices remain stable – just 4% up on this time last year. However sales volumes are down compared to this time last year.
Looking at the statistics across the water on the islands, it’s clear that the market has not gone into hibernation for the winter. Good sales in June were driven by a desire for buyers to get away from the city and have more space – and, of course, be surrounded by that wonderful beachy island lifestyle and the health and wellbeing benefits that comes with it.