C21 Market Pulse | July 2023 | Australia

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WELCOME TO THE July 2023

ISSUE OF C21 MARKET PulSE

P u B l ISHER

Century 21 Australia Pty Ltd

CONTRIB u TORS

Chris Gray Tim Lawless YourPorter

EDITORIA l ENQ u IRIES

Century 21 Australia (02) 8295 0600

ADVERTISING ENQ u IRIES

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DISC l AIMER

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H OME VA luE INDEX SHOWS HO u SING VA luES INCREASE IN J uNE, B u T THE PACE OF GROWTH HAS S l OWED

Australian housing values moved through a fourth month of recovery with CoreLogic’s national Home Value Index (HVI) rising 1.1% in June, decelerating slightly from the 1.2% gain recorded in May.

Since finding a floor in February, the national measure of housing values has gained 3.4%, however, the market remains 6.0% below peak levels recorded in April 2022. That is the equivalent of the median dwelling value still being $45,771 below a peak of $768,777.

Every capital city except Hobart ( 0.3%) saw dwelling values rise in June, with CoreLogic’s research director, Tim Lawless, noting that Sydney continues to lead the cycle.

“Sydney home values increased another 1.7% in June, taking the cumulative recovery since the January trough to 6.7%. In dollar terms, Sydney’s median housing values are rising by roughly $4,262 a week,” he said.

A lack of available supply continues to be the main factor keeping upwards pressure on housing values, Mr Lawless said. “Through June, the flow of new capital city listings was nearly 10% below the previous five year average and total inventory levels are more than a quarter below average. Simultaneously, our June quarter estimate of capital city sales has increased to be 2.1% above the previous five year average.”

Although housing values continue to record a broad based upswing, the pace of growth across most capitals eased in June. “A slowdown in the pace of capital gains could be a reflection of a change in sentiment as interest rate expectations revise higher,” Mr Lawless said. “Higher interest rates and lower sentiment will likely weigh on the number of active home buyers, helping to rebalance the disconnect between demand and supply.”

Regional housing values have also trended higher, albeit at a slower pace relative to the capitals. The combined regionals index also recorded a fourth consecutive month of growth, taking housing

BY TIM LAWLESS, HEAD OF RESEARCH, CORELOGIC

values 1.2% higher than the recent low in February.

Mr Lawless notes the softer growth trend across regional areas of the country align with recent shifts in demographic factors.

“After regional population growth boomed through the worst of the pandemic, internal migration trends have normalised over the past year, resulting in less housing demand across regional markets. Additionally, housing demand from overseas migration is skewed towards the capital cities rather than the regions.”

Regional Victoria is the only rest of state market where quarterly housing value trends remain negative, down 0.4% in June to be 1.3% lower over the quarter.

“Value declines were evident across most the SA4 sub regions of regional Victoria, including the areas adjacent to Melbourne. In June, Geelong home values were down 0.7%, Ballarat values fell 0.3% and Bendigo was down 0.9%,” Mr Lawless said.

Click here to read the full article

B uy ING WITH l OGIC NOT EMOTION

BY CHRIS GRAY, CEO, YOUR EMPIRE

There are many mixed messages in the media and in our social circles about what’s happening in the property market and whether to buy now or wait

Most of us agree that buying an investment should be a 100% logical decision.

Buying a home is obviously emotional but there should be some logic to it too, given that it’s probably the biggest financial decision of our lives. When it comes to holiday homes, that is often 100% emotional, but again you would hope that some logic would come into it rather than completely throwing your money in to the wind.

So, what are the arguments for waiting or buying now?

WAIT

1. It makes sense as interest rates have risen very quickly and there’s potentially more to come.

2. It might be very hard to admit to your friends and colleagues you’ve bought as they’re bound to question your logic.

3. Property is bound to drop, isn’t it?

4. Surely that mortgage cliff is going to cause many people to be forced to sell.

BUY NOW

1. We’ve gone through 90%+ of the pain of a dozen interest rises and so even if there is one or two more will it make that much difference?

2. Most capital cities have been rising for the last 3 months, with Sydney seeing 4.9% in the last quarter.

3. If a $1M property has risen by $49k, how long do you want to leave it till you jump in?

4. You’ve already missed the ‘bottom of the market’ and so what are you going to do, wait for the next one?

5. If you’re investing for 10 20+ years, even of you get it slightly wrong, time heals most issues.

6. That’s what contrarians do, “Be fearful when others are greedy and greedy when others are fearful,” Warren Buffet.

Continued over page

Continued from previous

In my 30+ years of buying homes and investments both here and in the UK, I’ve found that most people are completely emotional when buying property even though they talk logically.

The majority of people find it easier to sit on the fence and do nothing, rather than be uncomfortable and make a decision.

We’re definitely seeing a range of sales prices in the market – some that are selling short, some on target and some that are selling over the odds.

My personal strategy seems to have worked well over the last few decades and that is to buy when:

1. When I have the deposit to buy

2. When I can get a mortgage and

3. When I have enough cash buffer to fund me for a few years.

I think differently to most people though. I’m an accountant and don’t have any emotion.

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

5 ESSENTIA l Q u ESTIONS WHEN CHOOSING A REA l ESTATE AGENT TO SE ll yO u R HOME

Selling your home can be a complex and emotional process, and it's crucial to have the right guidance. Choosing the right real estate agent is critical to not only achieving the best possible sale price, but also a less stressful sale journey. A reliable agent can help you navigate the complex real estate market, market your property effectively and negotiate the best price on your behalf. Here are the top five questions to ask when considering a real estate agent to sell your home.

1. HOW LONG HAVE YOU BEEN IN THE REAL ESTATE BUSINESS?

When choosing a real estate agent to sell your home, it is essential to ask about their experience. An experienced agent has a good understanding of the local market and can leverage their expertise to sell your property quickly and

efficiently. They are likely to have a broad network of potential buyers, other agents, and industry contacts, which can help you get the best deal.

2. WHAT IS YOUR MARKETING STRATEGY?

The success of your home sale largely depends on your agent's

marketing strategy. A competent agent should have a clear plan on how to market your property to potential buyers. Ask your agent about their approach to advertising, including online marketing, social media, open houses and print media. A good agent should be able to tailor their marketing strategy to your unique needs, ensuring maximum exposure for your property.

3. WHAT IS YOUR PRICING STRATEGY?

Pricing your home correctly from the start is crucial to attracting the right buyers and maximising your sale price. A skilled real estate agent should have a deep understanding of the local market and be able to provide you with an accurate pricing strategy based on recent sales data and market trends.

Ask your agent how they determined the recommended price and how they plan to adjust the price if necessary.

4. HOW WILL YOU COMMUNICATE WITH ME THROUGHOUT THE SELLING PROCESS?

Effective communication is critical to a successful home sale. Ask your agent how often they plan to communicate with you, including frequency and through what channels. A reliable agent should keep you informed at every stage of the selling process, including feedback from potential buyers, offers and negotiations. They should

also be accessible and responsive to your inquiries and concerns.

5. WHAT DO PAST CLIENTS SAY ABOUT THEIR EXPERIENCE?

One of the best ways to evaluate a real estate agent is by hearing directly from their past clients. A trustworthy agent should have a collection of glowing testimonials from satisfied customers who have worked with them in the past. Do your research, by getting an insight into the experience past clients have had, you can gain valuable information to help you make an informed decision about which agent to choose.

Choosing the right real estate agent is critical to getting the best possible result when selling your home. Asking the right questions can help you find an agent who has the experience, expertise, and communication skills needed to help you achieve your home selling goals.

At Century 21 Real Estate getting the best results for our clients is what we do.

Contact your local C21 property expert today for an obligation free discussion.

H OW TO SAVE MONE y ON yO u R NEXT MOVE

BY YOURPORTER

It’s no secret that costs of living are on the rise, with 93% of Australian households seeing an increase in their household bills in the past year. So it’s understandable if the prospect of moving house has you worried about breaking the bank

But the good news is, there are some simple ways to make sure you’re getting the best value for money on your next move – so you can keep costs down.

CONNECTING YOUR GAS AND ELECTRICITY

Studies show that power bills are a growing cause of concern for 80% of Australian households. Moving house is the perfect opportunity to compare energy providers across the market and to make sure you’re getting the best deal.

Considering there are over 30 energy retailers in Australia, can you be confident your provider is offering you the best price? With so many suppliers on the market, pricing is often competitive. Beyond just the energy rates offered, you might be able to access offers like pay on time discounts that can save you money on each bill if you’re a punctual payer.

Many energy retailers also have fresh deals to onboard new customers, while existing customers

are left on legacy plans or billing arrangements. It’s also worth keeping in mind that a different plan may suit your changing needs better, particularly if you’re moving into a home that is significantly smaller or larger than your last.

TRANSFERRING YOUR PHONE, INTERNET AND PAY TV

For phone, internet, and pay TV services, you may be able to simply transfer your connection from your old home to your new one. You should find out if there are fees for cancelling, relocating, or installing a new connection.

Some providers may even change your package if your new address doesn’t have the same services available. So it’s a good idea to check the services on offer from different providers and work out what your best option is.

UPDATING YOUR INSURANCE POLICIES

When you move house, your home and contents insurance policy doesn’t automatically stay

the same. Because premiums are calculated based on a range of factors – including the type of property, location, and cost of replacement – they may actually go up, depending on where you move to. Even your health insurance premiums could change, particularly if you’re relocating interstate where there may be differences in the healthcare system.

But remember, you don’t necessarily have to stick with the same insurance provider. Moving home is a great time to review your insurance policies, and shop around to find the right cover for your new situation and budget.

Using YourPorter’s comparison service is completely free and allows you to compare plans from Australia’s top electricity, gas, internet, insurance and pay TV providers. Plus, if you find a plan that better suits your needs, their team of experts can make the switch for you. For more information, visit: www.yourporter.com.au