C21 Market Pulse | April 2023 | Australia

C21

WELCOME TO THE April 2023

ISSUE OF C21 MArKET pUlSE

p UB li SHE r

Century 21 Australia Pty Ltd

CONT ri BUTO r S

Tim Lawless Chris Gray Your Porter

ED i TO ri A l ENQU iri ES

Century 21 Australia (02) 8295 0600

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Century 21 Australia (02) 8295 0600

D i SC l A i ME r

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N AT i ONA l HOME

VA l UES U p 0.6% i N

MA r CH, B r EAK i NG A 10-MONTH STREAK OF FALLS

After remaining virtually flat in February (-0.1%), CoreLogic’s national Home Value Index (HVI) posted the first monthon-month rise since April 2022, up 0.6% in March.

Dwelling values were higher across the four largest capital cities and most of the broad ‘rest-of-state’ regions, led by a 1.4% gain in Sydney. CoreLogic’s Research Director, Tim Lawless, put the rise down to a combination of low advertised stock levels, extremely tight rental conditions and additional demand from overseas migration.

“Although interest rates are high and there is an expectation the economy will slow through the year, it’s clear other factors are now placing upwards pressure on home prices,” Mr Lawless said.

“Advertised supply has been below average since September last year, with capital city listing numbers ending March almost -20% below the previous five-year average. Purchasing activity has also fallen

BY TIM LAWLESS, HEAD OF RESEARCH, CORELOGIC

but not as much as available supply; capital city sales activity was estimated to be roughly -7% below the previous five-year average through the March quarter.

“With rental markets this tight, it’s likely we are seeing some spillover from renting into purchasing, although, with mortgage rates so high, not everyone who wants to buy will be able to qualify for a loan. Similarly, with net overseas migration at record levels and rising, there is a chance more permanent or long-term migrants who can afford to, will skip the rental phase and fast track a home purchase simply because they can’t find rental accommodation.”

The lift in housing values has been most evident across the upper quartile of Sydney’s housing market. House values within the most expensive quarter of Sydney’s market were up 2.0% in March and the upper quartile of the Sydney unit market was 1.4% higher over the month.

“Sydney upper quartile house values fell by -17.4% from their peak in January 2022 to a recent low

in January 2023, the largest drop from the market peak of any capital city market segment. We may be seeing some opportunistic buyers coming back into the market where prices have fallen the most,” Mr Lawless said.

Regional housing markets have mostly shown firmer housing conditions as well, with the combined regionals index rising 0.2% over the month. Housing values across Regional WA and Regional SA remain at cyclical highs despite 10 rate hikes. SA’s Fleurieu- Kangaroo Island SA3 subregion led capital gains over the month with a 2.6% rise in dwelling values followed by Dubbo, NSW (2.5%), Wellington, Victoria (2.4%) and Mid West, WA (2.1%).

“The best performing regional markets are quite different to what we were seeing through the recent growth cycle,” Mr Lawless said.

Click here to read the full article

T HE T i DE COU l D BE TU r N i NG

BY CHRIS GRAY, CEO, YOUR EMPIRE

In my 30 years as a property investor, I’ve declared many times that I never try and time the market – I buy when 1) I’ve got the deposit 2) I can get a mortgage and 3) when I’ve got the cash buffer to take me through the next few years.

However, most property buyers don’t think like that and many of them are waiting for the bottom. If that’s you, then like auctioneers often say at the auction ‘I’m giving you fair warning…’ – I’m saying the bottom could be almost here, so you might want to get ready and get moving.

Changes in the property market are often caused by the softer side of things rather than hard facts and figures, so consumer sentiment –how people are feeling – often has more effect than the interest rate you are paying or the size of your tax rebate.

So, what’s happening:

1) Earlier this month, CoreLogic released the results of their Home Value Index and for the second month in a row Sydney prices had risen and not fallen. Melbourne and Brisbane had their first positive month as well. That is not a speculation or an estimate, that is a fact –property prices rose.

2) The RBA announced that interest rates would stay on hold this month and I think the whole country took a sigh of relief. Sure, there might be one

or two further increases, but there might also be some earlier than expected rate drops before the end of the year. Whichever way it goes, it’s a pretty big sign that we are at or near the peak of the current interest rate cycle.

3) If rates are likely to drop in the future, then that will increase everyone’s serviceability, allowing them to buy more property than they can now. If rates are due to drop then there’s also a chance that the banks / APRA will reduce the 3% serviceability buffers they

currently assess borrowers at, further extending what buyers can borrow.

4) On the negative side, there’s some talk about the potential mortgage cliff with up to 30% of fixed loans changing to interest only (IO) loans and/ or changing to principal and interest (P&I) in the future. If those borrowers are not able to pay the much higher monthly repayments, then there could be a lot of distressed property up for sale.

5) If 30% of mortgages could be up for a change to higher rates, then that means 70% have already made the change and they have been able to keep up their repayments. Those that are going to change would have had their serviceability assessed at +3% of where rates were then which is similar to where they are now. They’ve had the last few years of lower repayments

than everyone else and so surely some of that saving would have ended up in their offset accounts, giving them more ability to pay.

6) Elections are out of the way for a while and so that’s another fence sitting excuse that’s not going to be around for a while.

Just remember that in Covid the 2020 predictions were that the property market would drop 20-30% and it only temporarily dropped 5-10% at most. In 2021 they said the market would rise 5-10% and in some cases it rose 20-30%. In 2022 they said it would drop 10-20% and again it was only 5-10% in places. So, there isn’t a great history of getting predictions that accurate.

What I do know is that if you invest in blue chip property, in blue chip locations and hold on for the long term, you’ve got a very good chance of making money. Get in

when you have the money to get in and to hold on.

So, if you’re not like me, and you still want to time the market, this could be the sign you’ve been waiting for.

ABOUT THE CONTRIBUTOR

Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time-poor professionals – searching, negotiating, renovating and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney

TAKE THE ST r ESS OUT OF MOV i NG TO A NEW HOME

moving made

BY YOURPORTER

Moving to a new home can be an exciting time, but it can also be incredibly stressful. One of the most challenging aspects is the move itself. From packing boxes, to arranging a removalist, the final clean of the property, insurance protection for the new home, to connecting the essential services like electricity, gas, water, and internet (we say essential as we can’t live without it!). There are many suppliers to consider and there is no question it can be a time-consuming and frustrating process.

Thankfully, there are companies available that can help simplify the process of connecting your utilities among other services. Not all of them are created equal with some being owned by the suppliers they’re referring you to. This is why it’s so important to work with a company that offers a wide range of suppliers, who will help you find the best deals and ensure your services are delivered in a timely and efficient manner. With their expertise and experience in the moving industry, the right company can provide you with the guidance and support you need to make the

best decisions for your move, taking care of all the administrative tasks leaving you more time to focus on other aspects of your move.

If you're planning a move, it's worth considering a company that can consolidate a number of these services, while giving you access to an extensive network of partners ensuring you have ample opportunity for choice when selecting your preferred suppliers. If there’s an opportunity to do so via an online portal, meaning no call centres, this can significantly reduce the time spent arranging services. One such company that can help make your move as smooth as possible is YourPorter. With their range of services, from removal, cleaning, insurance cover, and more, YourPorter can take care of all the administrative tasks involved in your move. Their extensive network of utility providers means you'll have plenty of choice when it comes to connecting your desired services,

and their online portal makes the process quick, transparent, and easy.

In addition to these services, YourPorter also offers a complimentary energy review service. If you're not moving home but are interested in reducing your energy bills, YourPorter can help. They'll conduct a thorough review of your current energy services and identify areas where you could potentially save money, while still receiving the same level of service. This is just one way that YourPorter can help you save time and money, while ensuring you have access to the best utility services available.

WHY CHOOSE YOURPORTER

Independent – we are not aligned with or owned panel of providers to compete for your business Freedom – stay in total control, making choices or supplier preference

So, whether you're moving to a new home or simply looking to review your existing energy services, YourPorter can help simplify the process and ensure you're getting the best possible deals. With their extensive range of services and commitment to customer service, they can help make your move or energy review a success.

Simple – use our easy, online signup process Our service comes at no cost and no obligation Based in Melbourne, we are 100% Australian

YourPorter specialises in connecti ensuring your moving experience

moving made easy

YourPorter specialises in connecting household utilities ensuring your moving experience is made easy.

WHY CHOOSE YOURPORTER

Independent – we are not aligned with or owned by any energy retailer. We have created a panel of providers to compete for your business

Freedom – stay in total control, making choices to suit your needs be it cost, product features or supplier preference

Simple – use our easy, online signup process or speak to one of our friendly consultants Our service comes at no cost and no obligation

Based in Melbourne, we are 100% Australian owned and operated

CONNECTING SERVICES HAS NEVER BEEN EASIER

STEP 1

Once referred by an agent, YourPorter will contact you via SMS, email, and/or phone.

STEP 2

Choose your service providers via the online connection platform, or with the help of one of our friendly call centre team.

STEP 3

Defer marketing costs with

Defer marketing payment and have RealtyAssist advance the funds to your agency account.

Help vendors finance home improvements, repairs or staging to get the best possible sale outcome.

Settlement fund advances.

Competitive fees and hassle-free application process.

Over 10,000 members and counting.

T HE SEC r ETS OF SUCCESSFU l HOME STAGING

Staging your home is an essential step in the home-selling process. It allows potential buyers to visualise themselves living in the space, making it easier to attract interested buyers and sell your home faster. By highlighting the best features of your home and creating an inviting atmosphere, you can make a lasting impression on potential buyers.

Here are some key tips for staging your home to sell:

CLEAN AND DECLUTTER

The first step in staging your home is to clean and declutter. A cluttered home can make it difficult for potential buyers to see the true potential of your space. Take the time to organise your belongings, get rid of any unnecessary items, and give your home a deep clean.

NEUTRALISE THE DECOR

When staging your home, it’s important to use neutral colors and decor. This will make it easier for potential buyers to envision themselves living in your home. Bright colors and bold patterns can be distracting, so keep things simple and elegant.

FOCUS ON CURB APPEAL

The exterior of your home is the first thing potential buyers will see, so it’s important to make a good first impression. Focus on improving your curb appeal

by mowing the lawn, trimming hedges, and adding some colorful plants. A well-maintained exterior will make your home more inviting and attractive to potential buyers.

LIGHT IT UP

Proper lighting can make all the difference when it comes to staging your home. Make sure to let in as much natural light as possible and use artificial lighting to highlight key features of your home. Dark, dingy rooms can be a turnoff for potential buyers, so make sure your home is well-lit and inviting.

DEPERSONALISE YOUR SPACE

While your personal items may have sentimental value, they can be distracting to potential buyers. Remove any family photos or personal items to help potential buyers envision themselves living in your home. A depersonalised space will make it easier for buyers to imagine themselves living in the property.

CREATE AN INVITING ATMOSPHERE

When staging your home, it’s important to create an inviting atmosphere. This can be achieved by adding cozy blankets, fresh flowers, and other decorative elements. Make sure your home feels warm and welcoming, so potential buyers will want to stay awhile.

HIGHLIGHT KEY FEATURES

Make sure to highlight the best features of your home when staging. This could be a beautiful fireplace, a spacious backyard, or a stunning view. By drawing attention to these key features, you can help prospective buyers see the true potential of your space.

By following these key tips, you can successfully stage your home to sell. At Century 21, we know how important it is to make a good first impression, and we can help you every step of the way. Contact us today to learn more about how we can help you achieve the best possible result when selling your home.