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April 2022 Sales Update
over 2 years ago
April 2022 Sales Update
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PACE OF GROWTH CONTINUES TO EASE


CoreLogic’s national Home Value Index was up 0.7% in March, driven by stronger conditions in Brisbane, Adelaide, Perth and the ACT. However, there has been a slip in values across Sydney and Melbourne.

The first quarter of the year has seen Australian dwelling values rise by 2.4%, adding approximately $17,000 to the value of an Australian dwelling. A year ago, values were rising at more than double the current pace, up 5.8% over the three months to March 2021 before the quarterly rate of growth peaked at 7.0% over the three months ending May 2021.

Sydney’s growth rate is showing the most significant slowdown, falling from a peak of 9.3% in the three months to May 2021, to 0.3% in the first quarter of 2022. Melbourne’s housing market has seen the quarterly rate of growth slow from 5.8% in April last year to just 0.1% over the past three months.

CoreLogic’s research director, Tim Lawless, says while the monthly rate of growth was up among some cities and regions, there is mounting evidence that housing growth rates are losing momentum.

“Virtually every capital city and major rest-of-state region has moved through a peak in the trend rate of growth some time last year or earlier this year,” Mr Lawless said.

 

Monthly change in capital city home values

 

                                                                  MONTHLY                               ANNUAL

Sydney                                                      q 0.2%                                      p 17.7%

Melbourne                                              q 0.1%                                       p 9.8%

Brisbane                                                   p 2.0%                                      p 29.3%

Adelaide                                                  p 1.9%                                       p 26.3%

Perth                                                          p 1.0%                                       p 7.0%

Hobart                                                       p 0.3%                                       p 22.3%

Darwin                                                       p 0.8%                                      p 10.6%

Canberra                                                  p 1.0%                                       p 21.6%

National                                                   p 0.7%                                       p 18.2%

 

Sharpest slowdown in Sydney

The sharpest slowdown has been in Sydney, where housing prices are the most unaffordable, advertised supply is trending higher and sales activity is down over the year.

There are a few exceptions to the slowdown, with regional South Australia recording a new cyclical high over the March quarter and some momentum is returning to the Perth market where the rate of growth is once again trending higher since WA re-opened its borders.

 

Growth trend to fall sharply in coming months

With the softening in market conditions, the national annual growth rate (18.2%) has fallen below the 20% mark for the first time since August last year, after reaching a cyclical high of 22.4% in January 2021.

Mr Lawless said the annual growth trend will fall sharply in the coming months, as the strong gains recorded in early 2021 drop out of the 12- month calculation.

 

Housing turnover easing

National housing turnover is also easing, with preliminary transaction estimates for the March quarter tracking 14.3% lower than the same period in 2021, but still 12.2% above the previous five-year average.

“Nationally, the volume of housing sales is coming off record highs but there is some diversity across the capital cities in these figures as well. Our estimate of sales activity through the March quarter is 39% lower than a year ago in Sydney and 27% lower in Melbourne, while stronger markets like Brisbane and Adelaide have recorded a rise in sales over the same period.”

Regional Australia continues to show some resilience to a slowdown with housing values across regional areas rising at more than three times the pace of the combined capital cities through the March quarter.

 


DIVORCE & WHAT YOU NEED TO KNOW ABOUT VALUATIONS


Deciding what to do with the marital home is just one of the many difficult decisions facing divorcing couples.

A valuation of the property will be required as part of the divorce proceedings, to determine the true, current value of the home. To ensure an even result, it’s a good idea for each party to obtain separate valuations.  It’s also important both parties agree what will be included in the sale of the home, before the valuation is done. The inclusion of things like whitegoods, built-in furniture, curtains, and light fittings will all have an impact on the final results of both valuations.

To produce a property valuation a licensed valuer will attend the property and ask questions about the house and its condition. The valuation will be presented back to the client in a formal report, which will be used in court during the divorce proceedings. The report is a professional document and as such, the valuer in some cases may be asked to explain their valuation in court. The final decision may then be left to the judge, after referencing both valuations. The valuation will of course also inform the final sale price of the property and contribute to how the equity is split as part of the divorce. Several factors are considered here, such as original contributions to the purchase of the house and ongoing contributions by each individual. The valuation process ensures everyone has a sense of how things might turn out in the divorce proceedings.

 


ARE YOU PREPARED TO BUY AT AUCTION?


There is nothing quite like the atmosphere of an auction: the air thick with anticipation and competitive spirit, the eagerly gathered crowd and the life changing possibilities if your bid is accepted.

Thousands of auctions happen across the country every week and much of their popularity is surely to do with the transparency and accessibility of the process to the public. Auctions offer a clear and secure process for homeowners and buyers to navigate the sale or purchase of a property. The auction process also allows the marketplace to decide property values and gives everyone a fair chance at snapping up their dream home.

Prospective buyers should research the property before auction, arranging any necessary building inspections, pest inspections or conveyancing.  Familiarise yourself with the contract of sale and make sure you have asked any questions to clear up things you’re unsure about. It goes without saying that you should be sure you have, or will have, access to the finance for the property if your bid is accepted and you will need to be able to pay the deposit on the day. Working through all these points will help confirm your decision about whether to bid on the property or not, on auction day.

It's a good idea to try to arrive a little early on auction day, for a few reasons. It gives you time to view the property once more and speak to the agent to make them aware of your intent to bid. Once you’ve done this, you’ll be able to find yourself a good position, ideally standing within the agent’s line of vision. When you bid, speak loudly and confidently so you can be heard and to let the competition know you’re serious. Buyers with doubts will soon fall out of the bidding war if they know you’re on a mission to buy.

Competition usually intensifies when the auctioneer announces ‘the property is on the market’.  This means bidding has now exceeded the vendor’s reserve price and the property will be sold to the highest bidder. If you are the last person with their hand in the air, congratulations! Get ready to handover your deposit, sign the contract and crack open a bottle of champagne because you now own a house!

Sounds pretty straightforward right? Preparation is key as is maintaining a calm demeanour. Remember not to let your emotions get the better of you - know your budget and bid to the level you are comfortable with. Your goal is to be the highest bidder - even if the bidding fails to achieve the reserve price, you’re still in with a chance as the highest bidder is usually offered the opportunity to negotiate at this point. As mentioned earlier, make sure you’ve conducted all necessary research about the property and you can afford to pay for it. There is no cooling off period for purchases at auction.