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Strong Demand, Limited Supply Force Sellers to Delay Sale

An increasing number of vendors are renting back their houses or delaying the settlement period for fear they won’t be able to find another house amidst robust demand for a limited supply of properties on the market on top of delays due to lockdown restrictions and weak rental vacancy rates.

It is now common to see extended settlement periods, leaseback deals ranging from two weeks to six months and other ingenuous clauses that we only have previously seen in the top-end of the market.

A contract settlement period, in general, is 28 to 42 days. Currently, this has become three to six months. Some sellers are requesting  a leaseback arrangement, which means real estate agents need to be aware of both buyer and seller needs and to negotiate more creatively.

Some agents are witnessing leaseback transactions for garages and storage spaces or alternatively deals that offer buyers quick access to those spaces.  

Such options are important to encourage wary homeowners to sell, especially with the downsizer market.  On the flip side, interstate buyers are also asking for extended settlements while borders remained closed.

Here’s hoping that the pressure on buyers and sellers will ease with the ending of the lockdown and that stock levels will expand and make people more confident to transact.  

If you’re thinking of selling anytime within the next 12 months and would like additional information call Annette Pinkerton 0418447856.

Home Selling 101: Get Rid of These 7 Items When Selling Your Home

House hunting is exciting, and that feeling can come from envisioning yourself living in the house you’ve dreamed about for so long. However, it cannot be easy imagining the place to be yours when it still feels like it belongs to another.

Buyers will feel the same when they see your house during open inspections. They can be turned off by clutter and excessive personal belongings, leading to reduced competition and offers.

Most agents, including me, will recommend getting rid of clutter and styling the home using furniture to showcase its most attractive features.

Moving out completely while the house is on the market may not be for everyone, especially sellers who haven’t found their next home yet. But freeing the home of items that might turn off buyers will let a sale happen and ideally result in higher price.

  1. Noticeable Clutter

The first step is decluttering and this should be done weeks before listing the home.

These can be easy tasks like clearing kitchen counters of cumbersome appliances like blenders and microwaves to make the area appear bigger, or emptying the hallways and entryways of coats, shoes and bags to create a sense of space.

  1. Odd homewares

Styling your home sometimes means that your tastes may not fit that of some buyers.

“Keep it vanilla,” is what I recommend. This means anything quirky or odd for the house, any item that makes buyers pause will distract them from the features of the property.

When a property is styled well, it can help sell a property quickly.

  1. Photos and personal belongings

Buyers want to envision themselves living in your house. But that is not easy when your photos are hanging on walls and fridges.

Family photos scattered throughout the home will show too much of your personality to buyers, and this makes it hard for them to establish a connection to the property.

De-personalisation should be implemented in every room of the home. Too many personal items in the bathroom can turn off buyers, so the best thing to do is keep the toothbrushes and medicines away.

  1. Cupboard items

Buyers tend to open wardrobes, linen cupboards and the pantry when viewing a property, which gives a literal meaning to the phrase “open home.” But a wardrobe bursting with clothes and whatnots won’t help sell a home.

To make a property feel more spacious, I suggest using a minimalist strategy while the home is on the market. Imagine that you’re taking a holiday and are living with just the items you can take.  In other words, pack away all the seasonal clothing you are not wearing, books, vases and linen that you want to take to your new home too and store them off site if you have to. 

  1. Pet items

Half of Australians have at least one pet, but it’s still best to keep away of any sign of pet occupancy during open homes. Not all buyers love pets, and pet items can make a property disorganised and distract buyers.

  1. Home offices and studies

A sale price can be impacted by the number of bedrooms. Thus, sellers are advised to convert home offices and studies into bedrooms before sale.

It’s important to make it clear what each room is used for. Buyers might not be able to visualise a room when they see a study.

  1. Backyard junk

It is just as important to declutter your backyard. Left-over construction materials like bricks and timber should be thrown away, while garden tools should be stored properly.

Changing trends means some outdoor features that were once disliked are now popular. Ten years ago, people didn’t like vegetable gardens. Today, they’re a selling point, particularly with younger buyers.

If you are thinking of selling anytime in the next few months and are seeking advise, just ask Annette!

Why Real Estate Won’t Return To Normal Once Lockdowns Lift

Many real estate agents and principals are working in lockdown right now, and even though we are still able to list and sell property (under constrained circumstances), we are finding that the majority of sellers are saying they prefer to wait for restrictions to end and consider listing their properties when real estate returns to normal.

The problem is, when restrictions end, real estate won’t return to normal. In fact, if we take into account what happened last year when Melbourne agents were in an extended lockdown period, it was just the opposite.

The main lesson I learnt from One Agency’s in Victoria last year was that as soon as restrictions lifted and sellers rushed to the market, it lead to high demand for associated service providers like stagers, photographers, pest & building inspectors and conveyancers, causing major waitlists and a huge slowing in the process.

So, the immediate post-lockdown environment will actually be far from normal.  That’s why it’s so important to take steps right now to set yourself up for a successful post-lockdown sale.

 

How to set yourself up for a post-lockdown sale of your property

Styling and staging experienced big bottlenecks in Victoria last year. There are only so many styling professionals and their staging furniture to go around, which means there’s likely to be a big queue for this service when lockdown lifts.

One way to get around this problem is to consider selling right now. This can be a great option, because while there are less properties on the market, buyer numbers are still very strong, which means you are facing less competition than usual and certainly far less than when everyone decides to come to the market post-lockdown.

If you still prefer to wait until lockdown ends, you should try to book styling and staging appointments right now. If appropriate, consider offering to pay a deposit. That way, you can get to the front of what’s likely to be a long queue.

The same logic applies with contracts for sale and pest and building inspections. Demand for conveyancers and inspectors will skyrocket once lockdown ends, but supply of these services remain unchanged. Now might be a good time to go to market, because if you wait until lockdown is over, it might become harder for you to sell your property.  It may take longer and everyone knows that the longer a property is on the market, there’s a higher chance you’ll have to drop your original asking price.

Of course, if you want to wait, that’s your choice. In that case, speak to your favourite conveyancer right now and ask them to draft a contract of sale in readiness so you can get to the front of the long post-lockdown queue.  Remember to book your stylist and contact your agent so they can book your photographer.

These are conversations you need to be having right now because your competition is already doing it!

 

 

Increase Your Sale Price with Simple Home Updates

A complete kitchen overhaul is not needed for you to catch the eye of prospective buyers. All you need for a successful sale is cleanliness, curb appeal, and quality finishes.

First impression is important

What sets the expectation for the entire property is the front of the home. What makes up a first great impression is a verdant lawn, a neat garden, and well-painted exterior.

Fertilize your lawn to make it look really nice and green. Put in new mulch and make the front of the home present well.

You may also need to freshen up the front door and windows with a fresh coat of paint on the door and window ledges. To achieve a neat, uniform look, install plantation shutters across the entire front of the house. Meanwhile, roller blinds are appropriate for the bedrooms and living spaces as they allow light but still provide some privacy.

Linen

It may not be obvious to you that your doona cover has faded over time, but prospective buyers will see it.

Home styling experts suggest white bed linen as it is hotel-like, and crisp white towels and linens give off the feeling of indulgence to buyers. Add high pillows to complete the presentation.

With cushions, they add a dash of colour, and for towels displayed in the bathroom, make sure they are new and unused.

Add a homeliness vibe

Try to achieve a hotel look, but add a feeling of homeliness with fragrances, cleanliness and freshness.

Clean homes give buyers a sense of luxury because people don’t always get to live that way on a daily basis. Buyers need to feel the surreal cleanliness and a trace of freshness with fragrance.

On your kitchen bench, place herbs harvested from your garden as well bowls of fresh lemon. You can also fill a vase with fresh flowers or sprinkle a little cinnamon in the oven on a gentle heat so the fragrance wafts through the home.   

Outdoor spaces

 The concept of using all available spaces has been put on the spotlight this past year. Therefore, outdoor spaces expanding further than a “comfortable” season are major selling points.

For example, putting outdoor blinds on your patio will serve like a mesh. It will block the heat and the brightness of the sun and allow air to flow freely. It will also prevent water from coming in when it rains. And when you put in blinds prospective buyers can effortlessly see a new, liveable space without effort.

And finally, choose matching colour or texture from the interiors of the home with the outdoor living spaces. Cushions, rugs or furniture items can allow the shift from indoors to outdoors smoothly. 

For more great styling tips for your home contact me directly on 0418447856.

Tips to Make Your Open Inspection a Success

We often hear the saying “first impressions matter” but when it comes to open inspections, the motto to remember is “every impression matters.”

The reason is that the way a home is shown for an open home can determine whether prospective buyers are left in awe or dread.  Open inspections are not only impressing potential buyers with a home’s lovely features, but also presenting how well it is cared for and maintained.

Here’s what I recommend sellers pay attention to before starting an open inspection.

 

The General Vibe

Presenting the home in its best possible light is the simplest advice you can follow. Make the property neat, tidy, cool and fresh – all things that buyers check when looking at properties. Open doors, turn on the lights, adjust the temperature and attend to any awful pet smells to satisfy all senses.  I also recommend getting rid of personal items in your home, but it’s a fine line. There is no need to completely depersonalise because you don’t want your home to look and feel sterile. You want prospective buyers to see that your home is loved.

 

Hire Furniture

Hire furniture for the length of the sales campaign. With hire furniture, you can sell the dream of how a buyer would live in your home. A living area is just an open space until you add furniture, and then it transforms into a room where people could see themselves living there.

 

Styling

I always warn against “over-styling” your property. When styling for open, less is more. Make your property feel loved and comfortable and not overdone.

 

Don’t Overlook the Exterior

Focusing only on the interiors of a property is a trap. Outdoors is essential, especially if it’s an area for entertainment. Apply the same level of beauty you do on the interior to the exterior. Arrange tables and chairs and tidy up the gardens, lawns and edges.

 

Getting Ready to Sell

Typically your open home should run for around 30 minutes but sometimes I will recommend a longer open home time for larger homes or for your first open home.   This will depend on the number of active buyers attending viewings or the amount of enquiry coming in on your home.  I may also suggest a weekday open home or VIP Open Home!    The next step is to ensure that you are not present or spying on the property from your car or a neighbours home.  It’s now time to leave your home and let both your buyers feel comfortable and for your agent get to work! 

Thinking of selling this year?  Call me to arrange for an appointment to discuss my ideas to increase the value of your home and to make recommendations specific to your home!

How to Save More When Selling Your Property

When selling your property, you need to know there is a sliding scale between how much value you can add and how much you can spend.

Taking into consideration the conveyance fees, capital gains tax, and improvements, sellers may have a hard time finding additional funds to spend on property styling. But styling your property definitely pays off, I estimate it boosts the value of your home by roughly 2.5% to 3% and can help sell your home much faster. 

Here are 9 tips to help you raise the value of your home and get the highest possible price from the sale – without leaving you penniless.

  1. Apply a fresh coat of paint

One of the simplest and most effective ways to give your home a new lease on life is a new coat of paint. With paint, a room brightens up instantly and any wear and tear in the house is erased. If you do it yourself, all you need to buy is paint, brushes and rollers.

Stick to neutral colours such as white, off-white, or cream to attract as many buyers as possible. If your home is done in strong colours or you want to add some character or mood, you have the option to make a feature wall.  Just avoid any clashes, keep the rest of the surfaces simple.

  1. Potted colour

First impression is important, and having a beautiful front garden screams “sanctuary.” If your garden is needing a few more greenery and flowers, plant some more or put some colourful potted plants in to instantly help people feel comfortable. Plants can also make up for harsher frontages, like exposed bricks, by softening the severe edges.

Make your home feel fresh and modern and revitalise the most worn out-looking rooms with indoor plants and flowers. Place small succulents or potted plants on benches and tabletops to create a lived-in vibe in your home, and a larger potted cacti, an orchid or palm fronds in the entrance or hallway.

  1. Boost your street appeal

An overwhelming majority of Australians want a home with a yard for their family and pets, and having a beautiful outdoor area can attract prospective buyers. Landscaping can cost thousands, but there are simple things you can do to make your yards shine.

Plant hedges and trees that are cut and shaped so they look neat, mow and weed the lawns to make them look neat and fresh. Other extras you can invest in to make your outdoor spaces more charming include creating outdoor archways or DIY stepping stone pathways.

And always consider the sate of your letter box!

  1. Open up the space

This involves removing something rather than adding to a room. A space that feels big and open appeals to everyone. It has been shown time and again that removing some pieces of furniture or exchanging them with smaller pieces gives off a sense of space.

Natural light also appeals to buyers, so invest in a window treatment that offers privacy and protection from the direct sun without obstructing too much light.

If there is no natural light, a good alternative is maximising the use of artificial lights. A light fixture with multiple bulbs is effective in brightening a room, and you can create an elegant feature to update the look of the room, even when it’s dark.

  1. Hang mirrors

To make a room appear bigger, use mirrors. They are inexpensive and immediately bring a sense of space in a room. Place a large mirror behind a sofa or shelf in the living area, or behind the headboard in a bedroom. If your hallway is narrow and dark, use mirrors to add space and open up the walkway.

Mirrors can even be used effectively in your garden and outdoor areas too!  Get a little creative!

  1. Instant fixes

Kitchen renovations can be expensive, but they are also the space that can sell a property. If your kitchen is outdated and worn out, one of the best ways to freshen it up without costing you thousands of dollars to give a new coat of paint to the cabinets. You can do this project yourself, and then install new knobs or handles to complete the new look.

A great addition to your living room is rugs. They revitalise the space and transform its look and feel. To make a big impact, use large rugs, but choose ones that match your colour scheme. For example, tribal or graphic prints updates your home and complement most existing furniture.

For bedrooms, make them feel inviting and cosy with new linens. Similar with paints, use neutral bedding linens with minimalist designs, and choose simple patterns, rather than bright colours or clashing prints. To add more character, a bed runner can add style without being pretentious.

  1. Tidy up and remove clutter

Decluttering is one of the simplest styling tricks out there.

In property styling with the aim to sell, the main thing is to design the home like a blank canvas so buyers can visualise themselves living there. If it’s cluttered, your home can overwhelm buyers during inspections. Take away all the personal items and kitchen appliances you have collected over the years, and open all curtains and windows to let in natural light.

Giving your home a deep cleaning, including professional carpet cleaning, is worth every penny. This eliminates odours that may have been lingering in your home and leaves your home looking and smelling fresh and clean.

  1. Ensure your home smells nice

Odour is a big factor when preparing your home for inspection. A house that smells of pets, damp or stale could turn off prospective buyers, so get rid of bad odours by opening the windows or burning essential oils.  Please, please , please….  do not use air fresheners, so many people are sensitive to these kinds of fragrances and they could turn your buyers off. 

  1. Know the value of your home

Put your faith in your agent, but also find out for yourself how much your property is worth. Request the correct appraisals, study the market, check out similar listings and look up the sales history for your location. By knowing the value of your home, you will get a better idea of the sale price you may be offered.

 

Sell with One Agency

Selling a Home: Important Thing to Know When Setting a Price

Sell with One Agency

With the market constantly changing and massive amounts of money at play, arriving at a sale price for your home can feel overwhelming.

Sellers often set a price based on how much they need to repay debts or to purchase a new home. In reality, those figures don’t bear any relation to the property’s actual market value. It doesn’t work that way!

Sellers will also compare their home to nearby properties to determine a sale price, but their personal bias could influence the calculation.

Setting an independent value is more difficult than it seems. Most people talk to three real estate agents, trying to get three valuations on their home, but they are actually being given three pitches for business.  A good agent will work with a seller to set a fair price taking into account all the relevant market forces. 

Another option is to pay for a sworn valuation from a licensed valuer. 

Things You Need to Consider when Setting Sale Price

When determining the sale price for your home, you need to consider a combination of factors. For this, you need to be prepared to do a little research.

  1. Check listings in your area

Do some research on what is happening in your area so you can get a good indication of the present market trends.

First, look at the property listings in the same location as you. Focus on homes that have been listed over the past three months or longer.

Compare the original listings prices with the final sale prices when you look at the listings. This will give you information on any price reductions and supply and demand in the area.

  1. Look at comparable properties

There is no point in comparing a one-bedroom property when your home has five bedrooms. Focus on properties that are similar to your own – a decent range is areas that compare in square footage within a 10% variance up or down.

Aside from the square footage, also look for listings of properties that are the same age as your property and built with similar material.

  1. Check expired and withdrawn listings as well

To get an in-depth of what is actually going on in the market, you also need to look at expired and withdrawn listings.

This will help you figure out if any listing were withdrawn from the market and re-listed, highlighting any difference in listing sale prices. This should help you further understand the market situation and provide you with more guidance on what sale price is right.

How to Calculate the Value of your Home

When you have completed your research and have the information about comparable properties in your area, it is time for some computations.

You can calculate an average price if, for example, you found three or four similar sales in your area. This will give a better insight on what number you can realistically put on your home.

At this time, it also doesn’t hurt to seek help with experts – whether it is fine to add or subtract 10% of this average to either make your property more competitive in the market and boost your chances of a quick sale, or leave it to lady luck and try to get the highest possible price for your home as is possible.

If you are ready to talk, I’m available.   And, depending on your timeframe, your appointment can be as little as 15 minutes of your time!

 

Annette has been servicing the Newcastle and the Lake Macquarie regions and has been offering her clients sound recommendations and  professional advise since opening One Agency Pinkerton Properties in 2013.   If you found this article helpful or know someone who may benefit from it, feel free to share it. 

5 Home Features You Should Upgrade Before Selling

From new paint to simply making your yard neat and tidy, learn what focus-areas I recommend and tasks that will have a hefty influence without breaking the bank.

Find out what buyers are looking for, and how your home can meet their expectations.

  1. The Walls

Painting is always a priority because for each dollar you spend on painting, you are most likely to recoup over a thousand.

So what right colours do I recommend?

Choose neutral colours, but avoid the colours becoming too plain. Many shades of white are available, so what you choose will be determined by the amount of light your space gets, and the tones of furniture and floors.

If you change your flooring, take into account the paint as well, and vice versa. White tones will reflect the flooring’s colour.

  1. The Floor

Changing flooring is not simple, but there are times the present flooring is tattered and dirty. If your carpet is 20 years old, it’s going to gain a lot from an upgrade.

Picking new flooring for a property for sale should be influenced by the type of home and what kind of buyer you are targeting. For example, if you’re selling a home to attract home buyers (versus investors), then you have to show that in the flooring. I’d recommend choosing a really good engineered floorboard rather than a hard wearing vinyl.  If you are targeting property investors, choose quality, reasonably priced flooring, like an inexpensive laminate.

For carpets, both tenants and buyers still prefer softness when they step into their bedroom or upstairs areas. If you are appealing to investors who will eventually rent out the property, choose low-maintenance, stain-resistant carpets like the synthetic dyed nylon varieties. Choose something more luxurious – to appeal to people who are purchasing their forever home.

Lastly, consider the architecture and style of the remaining spaces of your home when choosing a colour or floor style. Consider the light in the spaces and the architecture of the home, as some homes benefit from a lighter or darker flooring depending on the period of style.

  1. The curb appeal

Street appeal is crucial because people often drive past a property before they have even determined if they’re going to its open inspection.

De-clutter and throw away any unnecessary objects, fix or mend fencing, plant some colour, mulch the garden then paint the front door and letterbox.

  1. The kitchen

We all know, what sells homes are kitchens and bathrooms. However, before you completely demolish your kitchen, find out if a renovation is more fitting.

If you’re going to remodel your kitchen, ensure that it is going to be reflected in the sale price. If not, then clean all surfaces and select some well chosen styling items.

If in any doubt, consult with me. It’s important not to over spend if you’re not going to get a return on your investment.

  1. The lighting as well as the windows

Clean your windows!   Allow people to see your yard and feel a connection to their potential home.  I also recommend trimming back any trees that block views or light. Most buyers place a high priority on a well-lit home.

Check your light fittings and update them if necessary.

 

Now take a tour of your home and see what improvements can be made to increase the sale price.  Remember, if you need help or advice, I’m just a call away!

 

Annette has been servicing the Newcastle and the Lake Macquarie regions and has been offering her clients sound recommendations and  professional advise since opening One Agency Pinkerton Properties in 2013.   If you found this article helpful or know someone who may benefit from it, feel free to share it. 

What Does Off-Market Sale Mean?

Have you heard the word off-market listing and wondered what it means?

An off-market sale means a property that is selling or has already sold with no public advertising, with real estate agents contacting interested buyers privately.

Sometimes sellers choose to accept an offer without formally ‘going to the market’ and advertising on the real estate portals or in magazines or the newspaper.  

This can be advantageous to the seller especially if the purchaser offers a strong price in order to lock out any competition.  It also quickens the sale and avoids having to spend money on advertising.  But be warned, an off-market sale doesn’t always deliver the best results especially when their is no competition because it’s hard to know if you’re accepting the best price possible.

Anyone who is high profile prefers an off-market sale because of the anonymity it offers. Sellers with scheming families or neighbours can also see the benefit in keeping their home’s sale private.  Often sellers who are looking for an off-market sale are usually those in relationships/marriage collapse, financial trouble, deceased estates or the seller may be facing job changes. Whatever their reason is, the one thing they have in common with is their need to sell quickly with the least amount of people knowing about it in order to focus on the more important issues in their lives.

Important to know is that off-market properties are usually only available for a brief period of time and they are usually the outcome of perfect timing.

Advantages of an off-market sale

Buyer:

  • The competition is weak so you may be able to purchase for a lower price. You may be the sole buyer who knows the anonymous listing and this exclusivity can mean getting that property for a lower price than if you bought in an open market.
  • High probability that your offer will be accepted. Even if your first offer is below market price, the seller may consider accepting your offer to avoid having to prepare the home for open homes and inspections as well as avoiding advertising fees.

Seller:

  • A fast sale – if priced keenly.
  • Normally sold with additional terms and conditions. When a seller prefers a silent sale, the fast sale usually contains more conditions, including shorter settlement periods, higher deposits, or inclusive of any structural flaws.
  • Avoid having to present the property for open homes and inspections
  • Avoid advertising costs.

Disadvantages of off-market sale

Buyer:

  • You still need to find a home that checks all your requirements, such as location, features, condition and price. This may mean additional footwork.
  • Who you know will make a big difference and it requires a long time to establish those insider relationships.
  • Absence of marketing materials, which means you can’t create a visual list of potential off-market investments.

Seller:

  • High probability that you will sell at bargain price compared to if you advertise your home.
  • Zero possibility of going to auction or capitalising on the huge passive market of people who regularly go online to search for investment or owner-occupied properties.
  • You may still lose, despite believing you can save money by not advertising. The reality is that they cost themselves tens of thousands of dollars because off-market will not offer the competition of a marketed sale.

Frequently asked questions

  1. What motivates vendors to sell off the market?

People who opt for an off-market sale are typically going for either a fast sale or private sale. For these people, selling the house is more important than the sold price.

The anonymity of an off-market sale usually attracts high-profile people or those who want privacy in their sales process.

  1. Can you purchase property that is not on the market?

Yes. But you will need the help of agents to find off-market properties. It’s important to get to know the agents in your chosen location so that you can work with what may be available.

  1. Can you remove your home off the market then re-list later?

Yes. Your home may be taking too long to sell and you and your agent decide that re-listing later is the best strategy to take.

 

Although selling off-market properties is a growing trend in Newcastle, One Agency Pinkerton Properties has been selling off-market properties since the agency was launched in 2013.

If you’re thinking of selling your property off-market this year, contact Annette Pinkerton on 0418447856 to discuss how this can work for you.

 

 

New Buyer Behaviors Revealed with Increase in Filtered Searches

The economic recession from the COVID-19 pandemic has caused serious restrictions in the ways people can spend their money.

Because of the ‘per person square meterage’ restrictions, we can’t go out to eat or attend sporting events like we used to and the closure of domestic and international borders have made travelling challenging whereas pre-pandemic it was a luxury that many Australians indulge in each year.

With borrowing costs at record lows – and not likely to recover in the near future – and restrictions on movement and spending, it looks like a growing number of Australians are thinking of putting their surplus funds into real estate.

The total search volumes on realestate.com.au were higher compared to the previous year and price-filtered searches are also on the rise.

An increase in filtered searches shows new buyer desires

The shifting nature of search behaviour throughout Australia over the last year can be seen in searches for properties listed for sale with a price filter.

Majority of searches performed on realestate.com.au are carried out with no price filters, but the site still get a massive amount of searches carried out with these filters and they can offer important insight into the changing nature of the property market.

The following are six trends that realestate.com.au is getting in the price filter search data:

  1. A higher share of searches at lower price points

In September 2019, 32.9% of price-filtered searches nationwide recorded the highest price of $500,000 or less, compared to 33.7% in September 2020.

  1. Increase in searches for homes valued at over $1 m

In September 2020, 23.1% of price-filtered searches recorded a maximum search price of over $1 million, versus 21.2% in the same year-ago period.

  1. Increased searches above $1 m in the capital cities than regional markets

In September 2020, 21.2% of all price-filtered searches for capital cities were for homes priced at over $1 million, up from 10.6% of searches across regions in the country.

  1. Change in searches over $1 m higher in regional markets

There were greater searchers for homes priced at over $1 million in capital cities, but regional markets have enjoyed a much greater growth in their share of $1 million searches over the last year.

The price-filtered searches for homes listed above $1 million in the combined regional markets rose from 8.9% in September 2019 to 10.6% in September 2020. The share in the capital city markets has increased from 20.8% to 21.2%.

  1. Lower searches in excess of $1 m in Melbourne but regional Vic increased

In Melbourne, the proportion of price-filtered searches for home above $1 million has dropped from 21.4% in September 2019 to 20.0% in 2020.

Meanwhile, searches for homes above $1 million in regional Victoria have risen from 6.1% of price-filtered searches in 2019 to 7.1% in 2020.

Darwin and regional Northern Territory are the only two places beyond Melbourne to have posted a decline in the proportion of price-filtered searches for homes listed above $1 million over the last year.

  1. Higher searches for $1 m homes across NSW

In Sydney, the share of price-filtered searches for homes above $1 million rose by 250 basis points from 2019, increasing from 38.2% to 40.7%.

In the NSW regions, the growing frequency of searches for $1 million homes has been even greater in Sydney with the volume of these searches increasing from 11.3% in 2019 to 14.0% in 2020.

What do these search trends mean?

There is chatter that working for home will become a more constant feature of Australian employment and that may motivate people to retreat from capital cities.

Out of the total price-filtered searches, searches for capital city searches were nearly twice as high than regional market searches. However, the share of capital city searches has increased by 23% from 2019 compared to a 46% growth in regional searches.

The figures also mean that it isn’t just people who had been priced out of the capital cities who are likely considering a move to regional markets, considering the major change in the share of searches for homes priced above $1 million.

 

If you have a home in Regional Newcastle/Lake Macquarie over $1 million and are thinking of selling, then now might be the best time for you to take advantage of the surplus of buyers in the price range.  Call me today to discuss the opportunity of selling your home to one of these buyers, many of which are cashed up!