prowest In this issue:
- Australian Property Market Update
- What your buyers are thinking on open home day
- Navigating contracts and agreements as a first home buyer
Australian Property Market Update
Australia’s real estate market has a combined value of $10 trillionand represents 56.3 per cent of household wealth.As shared onCoreLogic’srecent monthly housing chart pack, thevalue of Australian residences rose by 2.5 per cent in the threemonths to August 2023. This represents a slight change from theprevious quarter, when prices rose by 2.9 per cent.
Over the last twelve months, national average values are down by1.1 per cent. However, results differ between states and cities.
August housing breakdown
Growth across all capital cities was 1 per cent in August, whileregional markets held steady, with 0.1 per cent growth.The top performers by city during the last quarter were:
•Brisbane: 4.2 per cent
•Sydney: 3.8 per cent
•Adelaide: 3.4 per cent
•Perth: 2.9 per cent
•Melbourne: 1.6 per cent
•Darwin: 1.6 per cent
•Canberra: 0.5 per cen
Meanwhile, Hobart values dropped by 0.5 per cent. In the regions,the top performers were:
•Regional SA: 3.1 per cent
•Regional Qld: 2.5 per cent
•Regional WA & Regional NSW: 0.1 per cent
Year on year, Perth, Adelaide and Sydney have experiencedgrowth, while average values in Canberra, Darwin, Hobart,Brisbane and Melbourne have all gone backwards. The only tworegional areas to have experienced growth over the last twelvemonths are Regional WA and Regional SA
It is interesting to look at where things are in comparison to recordhighs, and when those highs were achieved.
For example, Sydney dwelling values are now an average of 6 percent lower than they were in January 2022.
In this issue:
•Melbourne prices sit 6.7 per cent lower than in February 2022
•Brisbane peaked in June 2022, with prices now down by 5.5per cent
•Adelaide and Perth values are currently at a record high
•Darwin peaked back in May 2014 and prices are now lower by 11.2 per cent
•Hobart has dropped by 13 per cent since they peaked in June2022 and Canberra has dropped by 8.6 per cent in the same period.
Sales, property rentals and listings
The peaks in Australian property prices represent a trough ininterest rates. Low rates mean higher affordability and it makessense that prices have settled as rates have gone up becauseborrowers have less money to spend.
However, there is still plenty of activity on the property market andthe average time to sell has extended only slightly, from 30 threemonths ago to 32 days in August.
As shared by CoreLogic, in the four weeks to September 3, newlistings totalled 36,320 nationally. New listings trended 16.5%higher through winter relative to the end of Autumn, and they arenow slightly higher than the historic five-year average.
Meanwhile, clearance rates are averaging 66.1% in the four weeksending September 3 2023, compared to an average of 65.6% inthe four weeks ending August 6.
Finally, Australian rent values increased a further 0.5% in August,taking the national annual increase to 9.0%. Annual growth in rentvalues remains elevated on the previous ten-year average, but hasshown signs of easing. The uplift in national rents is finally slowingdown and was the smallest since November 2020. National gross rentyield dropped slightly to 3.82%, from 3.83% in the previous month.
What does this mean for your property journey?
Average figures and trends are always interesting to look at butthe amount you buy or sell for will depend on the condition of yourhome, its location and the number of active buyers in the area.If falling prices in your postcode have you feeling disappointedin the leadup to a sale, remember the next place you buy is alsolikely to be cheaper than it was a year ago. If you are planning tobuy, take action now so you can experience capital growth wheninterest rates fall in the future.
Want advice on your next property move? Contact your local Professionals representative today.
The spring selling season is underway and there has been a jumpin listings in many parts of Australia.
While you only need one person or couple to buy your home, if you want the best price, you need to have as many people aspossible putting in offers.
Frustratingly, Australian buyers can be incredibly picky. Theyusually have something very specific in mind and if a place doesn’ttick their boxes, they will put in a low offer.
Before you put out the doormat for open home day, here’s an idea of what goes through prospective buyers’ heads when they cometo have a look around, and how you can present your place so itovercomes the most common objections.
What Australian home buyers are thinking:
“Where is this place?”
If potential buyers are driving up and down the street wondering which is the right property, they are off to a bad start.
There are a couple of ways to combat this.
To begin with, ensure that your house number can be clearly andeasily seen from the street. On or next to the letterbox is usuallyideal, but your house number clearly marked on a front fence or even sprayed on the curb, if your local councilallows, will make it easier for buyers to identify the correct property.
Secondly, your agent should place signage outside the homeand at a few key points on the street directing buyers to the frontdoor. If you are selling an apartment and the access is confusing,your agent should have someone at the entrance or street to give direction.
“My first impression is…”
You want people to smile as they walk towards the front door somake sure your home for sale has ‘street appeal’. Pathways shouldbe clean and easy to navigate.
If you’re selling an apartment, do what you can to make thelanding and front entrance seem appealing, even if it meansasking the neighbours to put their shoes out of sight (providing you get along well with them)
Never underestimate a first impression… some buyers won’tlook past the way they feel as they enter the building or even asthey pass the real estate agent on the way in. Make sure you’re working with a friendly agent who cares about getting you a good result.
“What’s that smell?”
The last thing you want when potential buyers walk into yourhome is for them to instantly be put off by a bad smell. Even if thehouse is amazing, it will drop towards the bottom of their wish listbecause the smell is all they will be able to remember.
One of the biggest culprits for generating smells in the home ispets, so get rid of food and litter trays, and give your furniture asteam clean or thorough wash before open day. It’s best to getrid of the smell instead of trying to mask it with deodorant or airfreshener at the last minute.
Fresh flowers or a scented candle can also make the place smellinviting without being overwhelming.
“I don’t like this furniture.”
You may think that home buyers would look at a home and see thefurniture and decoras irrelevant because it won’t be there whenthey move in, but this is far from the case.
It’s frustrating, but picky buyers can be put off and distracted by poor furniture choices. They won’t be able to picture themselves living there and will move straight on to the next place.
This is why agents recommend you declutter, upgrade oldfurniture or arrange for an interiors expert to style your property. Itmakes it look instantly more desirable and can add thousands ofdollars to the final outcome.
“What would I use this space for?”
If your home has an unusual or distracting feature or room, find away to minimise its impact by either directing attention away fromit or setting it up so its purpose is clear. A desk and lamp can turna nook into a study, or a smaller room can function as a storage space.
Be picture perfect on open home day
A quality agent will help ensure the best parts of your home standout on open home day and will be there to answer questions sobuyers are excited to take the next step. Don’t be afraid to askfor advice and to try viewing your home from the eyes of a buyerbefore you put it on the market.
Want help to sell your property for more? Reach out to your localProfessionals agent today.
NAVIGATING CONTRACTS AND AGREEMENTS AS A FIRST HOME BUYER
Buying your first home is an exciting milestone, but it also comeswith a lot of legal paperwork and contracts that you may not havethought about when you were getting financial approval andfinding a place.To make things a little easier, here’s a breakdown of the contractsand agreements you’ll encounter as a first-time homebuyer in Australia.
The sale contract
The sale contract is the foundation of any real estate transaction.
It outlines the terms and conditions of the sale, including theproperty’s price, settlement date, and any special conditions.You’ll find details such as whether the home comes withfeatures like curtains, air conditioning, security screens and adishwasher, etc. The contract will also outline the documentsyou will receive as part of the sale (e.g. building certificates orevidence of swimming pool registration).
Read the sale contract carefully and enlist the help of aconveyancer to help you so you don’t overlook any game-changing clauses such as the seller’s belongings being left onthe property. If you have questions, don’t be afraid to ask for clarification.
Be sure to look out for information about whether fences,decks and pools are compliant with regulations. If they are not, you should be clear on the cost of bringing them up to code.
Cooling-off period
As important as the sale contract is, the good news is that youare protected by the cooling-off period.
The cooling-off period comes after you sign the sales contractand allows you some time to ensure you have made the right decision. If you do change your mind during the cooling-offperiod, you should be able to withdraw from the purchasewithout any significant financial penalties.
You may lose a small percentage of the deposit, though, so itis still best to be as certain as possible before you sign a salecontract.
Cooling-off periods vary from 2 to 5 business days dependingon the state, and if you are buying in Tasmania, there is nocooling-off period at all.
Ask the selling agent what is expected from you under the terms of the cooling-off period.
Finance approval
Your lender will provide a finance contract that outlines theterms of your mortgage, including interest rates, repaymentschedules, and any additional fees. Ensure you understandthese terms and seek advice from a financial advisor if needed.
Building and pest inspection
It’s wise to request a building and pest inspection before theend of your cooling off period or before you sign a contractof sale. Your real estate agent may supply one, but it’s recommended you arrange an independent inspection to beon the safe side.
A professional will assess the property for any structuralissues, leaks, water damage or pest infestations. You can alsohire someone to confirm the pool and any additions like anoutdoor deck are compliant with legislation; you don’t wantto end up with a non-compliant structure that you have toremove or change at your own expense.
Title deed transfer
Once settlement is complete, the title deed is transferred toyour name.
Along with conveyancing, this is the other part of thepaperwork that makes the property yours.
The title deed proves your ownership of the property and isan essential legal record. Keep it in a secure place, as losing itcan be complicated and costly to replace.
Home insurance
Before settlement, aim to secure home insurance to protectyour investment. This insurance covers the structure of yourhome and its contents and should kick in on the day you takeownership. Shop around for policies that will cover yourbelongings and fit within your budget.
Get the right advice
Your real estate agent can give you introductory advice aboutcontracts, inspections and other documentation but you will alsoneed the help of other property industry experts like a solicitor/conveyancer, building inspector and potentially an accountant.If you need help to find someone in your area, your localProfessionals representative can point you in the right direction.
Want to know more about buying your first home? Get in touch today.
