Property market reports for the start of spring 2022 have come with a little less bounce in their step compared to previous years, in both Australia and New Zealand.
The overall message from commentators in both countries to date has really been: things are slower than normal, but it’s not unexpected and there’s no reason to panic.
This ‘steady-as-she-goes’ approach comes with the expectation of slightly longer selling times, flatter sales prices and increased competition for buyers who have a greater selection of properties to choose from and feel less pressure to pay the premium and buy quickly.
The latest report from REINZ, for September 2022, indicates anecdotal evidence of more first-home buyers in the market and slight increases in attendance at open homes and auctions in some regions.
The average house price for the country increased by 2.0% to $811,000 in September, compared to $795,000 in the same month last year. The figure is also up 1.4% from $800,000 in August.
With Auckland sales removed from the figures, the average price for the rest of the country decreased 0.7% from $720,000 to $715,000, when comparing September 2022, with September 2021. There was a month-on-month increase of 2.1% from $700,000 in August.
REINZ CEO Jen Baird has indicated that the absence of investors is one, on-going factor in market activity.
“Investors remain largely absent — new tax legislation and rising interest rates have created concern amongst this buyer pool, seeing them step back.
“Overall, buyers remained cautious in September. Increasing interest rates, tighter lending criteria, and concerns around the cost of living continue to challenge the pace of the market.”
The traditional spring market lift has been more subdued than usual in September. Properties around New Zealand and Australia are taking slightly longer to sell, compared to the same time last year during the boom. Marketing methods will be key to success.
REINZ'S latest figures show properties are taking an average of 47 days to sell, up tp ten days on the same time last year.
In Australia the latest figures from PropTrack indicate have found new listings to the realestate.com.au portal in state capitals were down 9.3% in September when compared to August. Regionally, new listings were down 4.7% month-on-month.
Nationally, the total number of properties listed for sale in Australia remained flat, as homes already listed were staying in market for longer, offsetting the decline of new listings.
The total number of properties actively listed for sale around the country is up 10.8% compared to September 2021.
The report attributes some of the September market slow-down to external social factors such as the national day of mourning for Queen Elizabeth II, a Labour Day holiday in several states and the AFL Grand Final; all potential distractions for buyers and disruptors to sales campaigns.
Go beyond portals:
REINZ CEO Jen Baird says in the institute's September 2022 property report, it takes more than just listing your property on your portal to be noticed.
“Standout properties matter in this market and those that are marketed well are selling faster."
Many clients, alarmed at the prospect of flatter sales price, may be tempted to pull back on their marketing spend to try and recoup margins by relying on portal listing only.
Talking to them about the benefits of automated digital campaigns can be a good way to convince them that would be a false economy.
Some benefits to point out include:
Lower cost outlay for a higher return on investment
Transparent results with easy-to-adjust campaign parameters
Automated, optimized targeting to proactively seek out best-fit buyers
As an agent, it’s important to have your campaign strategy well-thought-out and tailored to what you know about the client’s property at the time of pitching.
Have plenty of case study evidence on the performance of previous marketing campaigns as proof of your strategy and expertise. Wherever you can use case studies that are recent from campaigns run in current market conditions so your vendors have a realistic view of what to expect.
Prepare plenty of evidence of recent sales in the area for similar properties so, at the start of your campaign, you and your clients have the same picture of what success looks like. It’s much better to have that conversation at the start of a campaign, than at the end of price negotiations with a potential buyer!
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