The Ray White Group has reported $5.71 billion in sales for October, the strongest month of sales in the group’s 118-year history.
The group reported that sales in October were 30.7 per cent up on the same month last year and 22 per cent higher than their previous record, set in November 2019.
New South Wales, Queensland, South Australia and the nationwide rural network all delivered record sales months, according to the group.
New Zealand also delivered its fourth straight record month, totalling $1.64 billion in sales, a 83.3 per cent jump from the same month last year.
Ray White Managing Director Dan White explained the record result didn’t come as a surprise.
“It could be seen on the horizon as early as May,” he told Elite Agent, “as buyer demand across all markets continued to build and surpass inquiry levels set in 2018 and 2019 by mid-June.
“It was a result that was achieved in spite of listing numbers, which on average across Australia and New Zealand has been less than 2018 and only slightly up on 2019.”
Mr White explained that a higher list-to-sale ratio has driven the record numbers.
“In October, we listed 14,977 properties, down 18 per cent from October 2019. Yet we sold 7520 properties during the month, up 16.2 per cent in October 2019.
“This trend was also reflected in our auctions statistics,” he continued.
“We had 1871 scheduled auctions for the month, which was actually 1.6 per cent less than October 2019,” he said, explaining that while October 2020 had one extra Saturday, overall numbers were impacted by restrictions in Victoria.
“We had so many records in the auction space, including auction day clearance rate at 65.8 per cent, and an average of 5.3 registered bidders per auction.
“On average, properties that sold at auction achieved a price that was 3.2 per cent over reserve and 10 per cent higher than the best offer received prior.
“Interestingly, while some markets have outperformed, if we take a more generalised perspective, prices are holding rather than materially rising.
“This is an interesting dynamic which historically has been a positive indicator of sustained market activity.”
Despite the pop of champagne bottles sounding off in Ray White offices around the country, Mr White is reluctant to rest on his laurels, spying a new record on the horizon.
“It would be reckless for us to take anything for granted at the moment,” he cautioned.
“However, November begins with great momentum, as listings numbers are rising and Victoria is finding higher gears.
“We aren’t sure how long our October record will last.”