After a booming 12 months for Australian real estate, vendor confidence across the continent remains robust, according to Raine & Horne.
Raine & Horne released new data that indicates property appraisals are about 34 per cent higher than winter 2020 and almost 44 per cent stronger than the same time in 2019.
According to CoreLogic, national home values rose 13.5 per cent over the past financial year.
The typical time it takes to sell a property across Australia has reduced substantially in the three months to June compared with the same period last year. Median days on market has fallen from 49 days nationally to 29 days.
Raine & Horne Executive Chairman Angus Raine said property markets often “take a breather’ during the winter season.
“However, this year and despite the lockdowns around the county, plenty of homeowners are aware their properties have enjoyed a value surge over the last 12 months and are eager to make a move,” Mr Raine said.
Mr Raine said the agency has seen a lack of listings over the past year, which has been a stumbling block for the market.
“So, the 34 per cent spike in appraisals is very pleasing and an excellent sign that the traditional selling market in spring will be strong this year for vendors and buyers,” he said.
Raine & Horne Gladesville/Hunters Hill Principal Tim Le explained that property listings in his area were still low but demand remained high.
“The surge in appraisals is a good indication for the spring market, and buyers are still waiting for good quality listings, demonstrated by an average of five registered bidders for auctions,” Mr Le said.
It should be noted, CoreLogic reported new listings are trending higher on a national level, with new stock added to the market up 10 per cent on the five-year average level.
Daily appraisal activity in Adelaide
In South Australia, Raine & Horne’s appraisals are up almost 47 per cent.
Co-Principal of Raine & Horne’s offices in Adelaide City, Salisbury, and Fairview Park, Trinity McNamara said this bodes well for the start of Adelaide’s traditional selling market in September.
“We are receiving daily phone calls to our offices in Adelaide City, Salisbury and Fairview Park for appraisals, and we anticipate this activity will translate into listings and sales and pave the way for a fantastic spring market,” Mr McNamara said.
“Over the last year, homeowners in northern Adelaide have achieved good growth, and now properties are selling for well-above expectations. We expect this confidence to continue and will ensure the appraisal activity translates into listings and spring sales.”
On the demand side of the ledger, upgraders and tech-savvy interstate buyers are leading the charge for Adelaide real estate, Mr McNamara noted.
“Over the last quarter, around 50 per cent of our stock was sold to interstate buyers, many of whom have recognised Adelaide’s affordability. Many of these people are buying sight-unseen.
“There’s also been an element of lockdown fatigue driving buyers to Adelaide, a factor we again expect to encounter to an extent this quarter.”
Port Douglas appraisal surge arrives at the right time for interstate buyers
Appraisals are up by about 40 per cent in Queensland compared to June 2020 and June 2019, according to Raine & Horne.
In the far north of the state, Raine & Horne Port Douglas beat the state average in the last month of the 2020/21 financial year with a year-on-year increase of 46 per cent.
Rain & Horne Port Douglas and Mossman Director David Cotton said they were “just starting to run out of listings, so the surge in appraisals is promising”.
“There’s no doubt that demand in Port Douglas and Cairns has been driven by southern state lockdown fatigue and we are selling properties almost as soon as we list them. So, it’s pleasing to see a surge in appraisals,” Mr Cotton said.
In 2020/21, Raine & Horne Port Douglas also exceeded its sales targets by almost 70 per cent.
Demonstrating the strength of the Port Douglas market, Mr Cotton sold five apartments in the Coral Apartments building, at 9-11 Blake Street, Port Douglas in one day.
“We listed them on Friday 9 July, and they were all sold for $245,000 by 4 pm the next day,” Mr Cotton said.
