The real estate industry could be in for a busy new year, with Domain reporting increased appraisal volumes across the country as sellers ponder the prospect of taking their property to market in 2022.
Compared to the same time last year, appraisal volumes have increased in Sydney, Brisbane, Adelaide and Perth, with Melbourne’s numbers leading the charge at 42 per cent higher than 2020.
Property appraisal numbers have also risen in the regional areas of each of those states, with South Australia showing a 61 per cent increase on this time last year.
Their analysis indicates final clearance rates for the record weekend were 73 per cent in Sydney, 66 per cent in Melbourne and 69 per cent in Adelaide.
“Sellers in these capital cities are confident and cashing-in on price growth, demonstrating a different phase of the property market compared to last year,” Domain reported, while noting they expect buying opportunities to look bright across Australia for 2022.
Property appraisals compared to the same time last year
Sydney and New South Wales
In Sydney, Domain’s data indicated auction volumes on Saturday broke all records, and the clearance rate also came in slightly higher than last week at 73 per cent.
That said, they noted the clearance rate had softened over recent weeks as more listings come to market, and this weekend, Sydney is on track to host 1100 auctions.
Looking to the future, Domain reported appraisal volumes are soaring above the same time last year in Sydney and have increased 32 per cent.
They predict this is indicative of a number of homeowners who are considering listing their properties for sale in the new year.
Beyond the capital, regional NSW is seeing the highest number of newly listed homes for sale this year. Domain’s data indicates there has been a 19 per cent increase in newly listed properties for sale compared to the same time last year.
“It seems many sellers are hoping to entice those dreaming of a lifestyle change,” Domain reflected.
Melbourne and Victoria
In Melbourne, the lockdown legacy continues with auctions, new listings and appraisals all surging in recent weeks.
Like Sydney, Melbourne was host to a record number of auctions on Saturday, but the clearance rate dipped to 66 per cent. This week, Melbourne is expected to host 1400 auctions.
“Melbourne continues to have thousands of new homes listing as the market readjusts post lockdown,” Domain reported.
“Sellers remain keen to cash in on price growth. The surge in listings means more choice for buyers and last Saturday tested their interest with the preliminary clearance rate hitting a three-month low.”
That supply looks likely to continue, according to Domain’s data on appraisals. They note appraisal numbers are 42 per cent above the same time last year.
In regional Victoria, sellers are also hoping to cash in on the push towards a lifestyle change, with newly listed homes hitting their highest volume for the year.
In total the number of newly-listed properties is up 17 per cent on last year.
Domain noted last Saturday tested buyer interest in Brisbane and saw the preliminary clearance rate drop to 72 per cent after a three-week run above 80 per cent.
“Despite the drop, clearance rates still continue to work in sellers’ favour, yet the high-listing numbers mean more choice for buyers,” they noted.
It was also a week which saw record breaking numbers of new listings hit the market, with volume up 20 per cent compared to the same time last year.
Domain reflected this indicates sellers are keen to get deals done before the end of the year and are looking to take advantage of the hot market.
There could also be a further surge of listings come the New Year, with appraisal numbers currently up 19 per cent on the same period in 2021.
Meanwhile, this weekend, Brisbane is set to see 100 homes go under the hammer.
Like Sydney and Mebourne, Adelaide had a record number of homes go under the hammer last week, resulting in a clearance rate of 69 per cent.
This week numbers are again set to remain high in the South Australian capital, with 170 homes set to go to auction.
Domain noted the weekly number of new listings is currently 8 per cent higher than the same time last year, while appraisal volumes are also on the up.
At present they are 34 per cent higher than last year.
Domain reported Perth has seen some of the highest numbers of new listings for this year in recent weeks, but now the market is showing signs of a seasonal slowdown as it heads into the Christmas break.
This week, new listings have generally decreased three per cent.
While that overall figure represents a decline, Domain explained it is not consistent across the board, with affordable areas like Armadale actually showing an increase in newly listed homes.
The Perth areas with the biggest weekly increase are:
- Belmont – Victoria Park
Meanwhile, the new year will likely see the Perth property market swing back into action.
Appraisals are higher than the same time last year, having increased 23 per cent.
New listings compared to the same time last year