John Wills, our Managing Director was joined by other interstate high performing agents, Alex Jordan, Sales Agent from McGrath Brisbane and Marty Fox, CEO of WhiteFox Melbourne on a panel hosted by Investment and Advisory group – Jarden, to discuss the housing market’s current state across the Eastern seaboard. Jarden first made a name for themselves back in 1961 and has now become New Zealand’s leading full-service investment banking and advisory group, servicing clients all around the world.
Here are the key takeaways from the event:
House prices are expected to fall another 5-10% over the next 6 months before stabilising around mid 2023. Sydney has already undergone a significant 20% price drop, so the possibility of further decreases is relatively unlikely.
Buyers are reassessing their targets of purchasing a home and have turned their attention to apartments/units. Meanwhile investors are beginning to re-enter the market, enticed by the 10% increase in rental income since last year in metro Melbourne. There has been some increased interest by foreign/Chinese buyers however they remain well below the numbers seen previously.
Volumes remain low (down 20%) but vendors are now more accepting of these softer market conditions. Most sales are driven by life events, though some distressed vendors are starting to emerge and agents expect these sellers to increase towards mid-23 as the ‘fixed rate cliff’ approaches. Meanwhile holiday homes are being impacted by rising land tax and mortgage payments.
Rental markets are incredibly tight and the competition is so high that property managers are receiving 20-30 applications before the first inspection. Part of what is driving this tight rental market is recent sellers who are either waiting for further price falls or finding the right home, and are willing to pay overs for rentals in the meantime.
Agents continue to use both REA and Domain portals for advertising, and while buyers also engage with these platforms to search for their next property they are more receptive to social media posts. As private market listings are on the rise, companies and agents alike are devoting more of their campaign spend towards social media, delivering up to 20-30% of enquiries. This insight champions Wills Property’s approach in prioritising our social media activity to build an effective brand and agent presence.
If you want the edge....... whatever your circumstance, there is no better time to invest and/or upgrade than when buyer numbers/competition in the marketplace diminishes and 2023 could present the opportunity you’ve been waiting for. Call John Wills on 0467 44 38 38 or email john@willsproperty.com.au to discuss your requirements.