C21 Market Pulse | October 2022 | Australia

WELCOME TO THE OctOber 2022 ISSUE OF c21 MArKet PULSe

PU b LISH er

Century 21 Australia Pty Ltd

c ON tr I b U tO r S

Tim Lawless Chris Gray Connectnow Realestate.com.au

e DI tO r IAL e NQUI r I e S

Century 21 Australia (02) 8295 0600

ADV ert ISING e NQUI r I e S

Century 21 Australia (02) 8295 0600

DIS c LAIM er

We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 Australia Pty Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability.

For more information on our Privacy Policy please refer to: www.century21.com.au/privacy

H OM e VALU e IND e X SHOWS r Ate OF D ec LIN e IN HOUSING VALU e S e AS e D IN

S e P te M ber

BY TIM LAWLESS, HEAD OF RESEARCH, CORELOGIC

CoreLogic reported a further fall in housing values through the first month of spring, with the national Home Value Index (HVI) recording a -1.4% decline in September. Although values continue to trend lower, the rate of decline eased from a -1.6% fall in August.

The loss of momentum in the pace of value decline was evident across most of the capital cities and broad rest-of-state regions, with a few exceptions. Housing value falls accelerated in Adelaide and Perth this month, however both cities continue to record only a mild reduction in values relative to the other capitals (down -0.2% and -0.4% respectively in September). Sydney’s monthly rate of decline eased from -2.3% in August to -1.8% in September, Melbourne tapered from -1.2% to -1.1% and Brisbane falls went from -1.8% to -1.7%.

Darwin remains the only capital city where housing values haven’t started to trend lower, although dwelling values remain -10.1% below the 2014 peak.

According to CoreLogic’s research director, Tim Lawless, it is probably too early to suggest the housing market has moved through the worst of the downturn. “It’s possible we have seen the initial shock of a rapid rise in interest rates pass through

the market and most borrowers and prospective home buyers have now ‘priced in’ further rate hikes. However, if interest rates continue to rise as rapidly as they have since May, we could see the rate of decline in housing values accelerate once again.”

The reduction in the rate of decline came alongside an improvement in other indicators. “Auction clearance rates also trended upwards, albeit subtly, in September and consumer sentiment nudged a little higher as well on the back of strong labour market conditions,” Mr Lawless said.

“We’ve also seen the flow of fresh listings continue to slide through the first month of spring, which is uncommon for this time of the year.”

After rising 25.5% over the recent growth cycle, housing values across the combined capitals index are now -5.5% below the recent peak, or in dollar terms, down approximately -$46,100. The combined regionals index,

which recorded stronger growth conditions through the upswing (41.6%), peaked two months later than the capital cities (June 2022), with values down -3.6% through to the end of September (approximately -$21,700).

Although the rate of decline eased in September, Sydney continues to record the largest falls, with housing values now -9.0% or -$104,300 below the city’s January 2022 peak. After a later peak and subsequent start to its slide, Brisbane has almost caught up with Sydney’s monthly rate of decline, to be -4.3% / -$33,600 below its June 2022 peak.

Most cities continue to see a substantial buffer between current housing values and where they were at the onset of COVID in March 2020.

Click here to read the full article

WITH YOU EVERY STEP OF THE WAY

Buying or selling a home can be stressful, but our teams are here to help you through every step of the process.

Contact your C21 property expert for service and advice you can trust.

Visit: C21.com.au

More properties for sale than anywhere else.

S HOULD YOU be LI e V e e V erY t HING YOU S ee IN t H e M e DIA?

BY CHRIS GRAY, CEO, YOUR EMPIRE

A recent current affairs TV story caused outrage in the property community with their sensationalising reporting about the property market collapsing. They had advertised the show heavily and people were talking about it before and afterwards, many thinking that the world could be coming to an end. So, should we believe everything we read/see in the media or is it all hype?

1. THE MEDIA IS A bUSINESS AND THEY NEED TO SELL TOO.

It’s a changing market and it’s even harder for newspapers and TV stations to draw the crowds when so many people are on their mobile devices. If they advertise a show saying that everything is all fine and you don’t need to worry, how many people will tune in? Probably not many. Bad news sells the best and that’s what we often see on 95% of the news shows unfortunately.

2. HOW MUCH OF THE CONVERSATION HAVE YOU HEARD?

Unless you’ve watched a live TV show, the chances are it’s been highly edited and so you might have only heard what they want you to hear. They need to do that though as it wouldn’t be that exciting if you heard 3 or 4 economists all drone on for an hour each. They do need to pick out the best bits, but the danger is that you’re actually getting

the producers or journalists view on the situation. In the situation above, one economist apparently had a 45-minute interview but only one minute was aired – which bit do you think they chose?

3. WHAT IS THE JOURNALIST’S KNOWLEDGE LEVEL OF THE SUb JECT?

Producers and journalists can’t be specialists in every single subject and so it can be genuinely hard for them to know what parts of various expert’s commentary need to be shown and what’s to be left on the editing room floor. Their skills are often in creating the most interesting or controversial story

4. THERE’S MORE THAN ONE PROPERTY MARKET.

Even if it is true that a property could drop 40% over the next year or two, does it mean that every property is going to drop 40%?

I don’t think so. It will all depend on: when you bought it, the price you paid, the price level you’re at in the market, the local demand, the local supply, whether you have to sell, what agent you chose, what marketing campaign you do etc. Some properties in Australia are continuing to rise, others could well drop 40%. The ones that drop are more likely to be the ones that are in massive supply and in limited demand -i.e. no one wants them.

5. THE bEST b OOK DOESN’T SELL THE MOST.

The most well marketed book does. The same goes with media – it’s all about how well they sell it.

6. WHO ARE THE EXPERTS

What vested interest do they have in saying a certain thing? If you ask a company that sells shares what they think of the property market, they’re going to bag it 99% of the

time because they want you to buy shares. You need to have a look at the expert, see what interest they may have in talking the market one way or another and then decide how much credibility to give their comments.

7. IS IT A ONE SIDED OR TWO-SIDED DISCUSSION?

In a perfect world you should hear from a number of experts that have completely opposite points of view to then give you a balanced opinion but that can reduce the effect of the sensationalising shock and then people get over listening to the headlines, so sometimes you just get one side. Sometimes they give airtime to experts that are always outrageous even if they’ve never been right, because at least it’s then supposedly balanced.

I’ve been presenting and writing in the property media for 10 years and so based on the above, you need to take what I say with a pinch of salt as well! I’m a personal property investor

and have a property buyers agency business so I am certainly biased too.

Many years ago, on my Sky News show I brought on a government property expert called Dr Mort Gage. He was a in fact a corporate hoaxer and for 30 minutes he talked about the plans for change in the property market. How the NSW government was going to build a tunnel from Vaucluse to Manly so that the rich eastern suburbs people could get to their holiday homes in Palm Beach a lot quicker. At the end of the show we revealed who he really was and all the show had been fictitious. The point was – just because you see someone in the media, doesn’t mean what they say is all true. I think I had my most complaints that night, but I think it’s a valuable learning and those viewers that complained didn’t get the point.

I always tend to see the positive in everything. If these TV shows do

turn people off the market in the short term, maybe that gives me more opportunity to buy myself and get a better property at a better price. Then when the market recovers I get every day of the growth whilst it takes the rest of the herd another 6-12 months to react.

A b OUT THE CONTRI b UTOR

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

No better location

Super is the only

fund built by, and for real estate professionals.

IPS FO r

b UYING A HOM e t HAt YOU SHOULD KNOW A b OU t

When you’re buying a home there’s no denying that there’s a lot to think about, but that doesn’t mean that the process needs to be stressful.

Before you embark on the process there are certain things you need to read up on and familiarise yourself with to make the experience as seamless as possible.

These tips can help you steer in the right direction if you’re considering buying a house in the near future.

1. DON’T bELIEVE THE HYPE (GOOD OR bAD)

When you set out to buy a house, you will quickly become familiar with deciphering real estate speak and how people market homes.

The key takeaway here is, do your own research to find out if an area is right for you from a budget and lifestyle point of view. There is several tools available to help you discover a suburbs potential.

BY REALESTATE.COM.AU

One of them is realestate.com.au’s suburb profile pages at realestate.com.au/australia/ – this is where you will find up to date data on most suburbs in Australia.

On these pages you’ll find:

• median property prices

• data showing the impact of interest rates

• average number of people looking for property versus the number of properties for sale.

All this gives you a great insight into the suburbs you’re considering for your next move or investment so you can search with confidence into the adventure.

2. VISIT THE LOCATION AND DO SOME FIELDWORK

You want a property that delivers what you need now, or enough of what you need that you’re happy to compromise for longer term capital growth.

Be very clear about what matters to you such as:

• access to major roads

• public transport

• shopping or entertainment hubs

• schools

• cultural diversity

Shortlist suburbs that deliver on those needs.

Do some field work to make sure the suburb’s right for you. Walk around the area you’re thinking of buying in. Grab a coffee, or a meal at the local pub. Pretend you’re already living there and see if distances are what they seem, and atmosphere is living up to expectations.

Look closely at what developments or infrastructure is planned around the area in case your quiet corner is about to become a developer’s haven.

3. CONSIDER SURROUNDING SUbURb S

If your target suburb is out of budget, consider more affordable neighbouring suburbs.

Before you buy, talk to locals to get residents views on the suburb and its best streets. Reading local publications and connecting with local websites, bloggers or personalities can also give you helpful insight.

If you’re attracted to an area because of its rising value, remember that may spill over into next door suburbs.

4. LOOK FOR THE UPSIDE Cooler periods in the housing market can be windows of opportunity, so it’s worth keeping an eye on interest rate and market trends. An easy way is to sign up for realestate.com. au’s weekly economist updates at proptrack.com.au/weeklyeconomist-update/

Some locations are potentially hitting the bottom of a pricing cycle, so there are bargains to be had. Hint: use the search filters on realestate.com.au to look for oldest listed first to see which properties may have struggled to get up, and may be amenable to negotiation.

5. TALK TO THE EXPERTS

Talk to local agents to find out what’s happening in the market. You may not get your dream home right away. It’s ok. Consider apartments instead of houses in the location you are wanting to purchase, they are often more

affordable and put you in your desired location. Or you may choose a property that needs a little TLC, but ticks other boxes.

Work closely with local agents to develop an action plan and strategy that meets your goals and needs.

6. STAY UP TO DATE AND GET IN FIRST

When looking for real estate it’s important to stay up to date

download the realestate.com.au app, create a profile and register for property alerts, helping you be among the first to hear about properties for sale.

For more buying tips visit realestate. com.au/advice

O P e N FO r

INSP ect ION:

4 PLA ce S YOU FO r GOt POte N t IAL

b UY er S WILL c H ec K

An open house is a crucial component of the real estate sale process. It provides potential buyers with the opportunity to get a real feel for a property and imagine what it would be like to live there.

Potential buyers are likely to inspect all areas of the property. Here’s a list of four often forgotten places that potential homeowners may check:

1. THE SIDES OF YOUR HOUSE

When you spruce up your front yard and backyard, pay attention to the sides of your home as well. Potential buyers will likely look at the exterior of your house from all angles. One unkempt side may turn them off from the rest of the home. Make sure the paint and landscaping is in good condition from all angles.

2. INSIDE YOUR WARDRObES AND CUP b OARDS

Don’t stuff everything in your wardrobe, or a cupboard, and hope no one will open them. Potential buyers will be interested in seeing the storage capacity. Show it off by organising it. You wouldn’t want a potential buyer to open a wardrobe

just to find a hodgepodge of the belongings you stashed there.

3. UNDER YOUR bED

Removing the bulk of storage from your wardrobes and cupboards is a great way to make your storage space appear bigger, but that doesn’t mean your stuff should be shoved under the bed. Not only is it an eyesore, but the potential homebuyer might also see it as a sign that there is not enough storage space in the property. If you have an overflow of items, it is worth seeing if you can store them temporarily at a friend's place or investing in an external storage facility so that your open house is clutter free and has all the space it needs.

4. INSIDE THE SHOWER

Leaving toiletries scattered at the bottom of your shower can make

your whole bathroom appear small, cramped and as though it is lacking in storage. Create storage solutions that may make your space appear bigger and brighter to buyers. For example, neatly organise toiletries and cleaning supplies under the sink.

Consulting a local property expert at the start of your selling process will make a big difference to your sale outcome and experience. Our C21 agents are here to offer advice on how you can make your property more appealing to buyers and what strategies you can use to market it effectively.

Contact your local C21 property expert today and learn more about how we can help you sell your home.