Wow! What a massive 18 months in the property market!

Wherever you’re situated in the market, a tenant, owner or buyer you’ll potentially be feeling a little battered anD bruised if you’ve had any transaction. But what’s really happened and what the prediction for the remainder of 2022? Well here’s what my 18 years in the industry have led me to
believe from my experience. 

2019 was an interesting time. We had what would now be considered a ‘slow’ time selling houses
with average days on market exceeding 35 and average buyers at open homes were about 5-10.
Auction clearance rates sat around that 70% and were considered acceptable. There was talk about
negative gearing, stamp duty changes and we also had an election. Overall not an exciting market
but consistent.

Early 2020 saw us start the year with a fresh energy which tends to happen every year to some
extent and then BAM! Covid 19 hit. My initial experience with this was the 7 homes I had signed and
preparing for market all ceased to move forward until further clarity came on board & the market
slowed with the heavy government lockdowns and restrictions we were guided by.

Once we all were released from lockdown and the ‘new norm’ was established with the pandemic
Owners were willing and happy to move forward with marketing their homes and sales proceeded.
Overall, probably only a 12 week ‘slump’ in my experience. One of the sales I had during this time
was a lovely lady I’ve sold 3 homes for. She’d purchased in Cameron Park only 12 months prior, in
2018 & moving due to unforeseen circumstances. We discussed that while the market had moved
prior to the pandemic, the end goal was to get her money back as a minimum. She purchased for
$705,000 & we sold it for $725,000. A good example of the market we experienced.

2021 was madness with over 50 people attending some open homes despite strict restrictions and
guidelines in place. The Auction clearance rates also increased to be in the 80 & 90 percentiles
depending on the weekend. In listing a it was common to rely on the recent sales and due to
receiving multiple offers well above the guide from interstate/ out of town buyers the prices were
astronomical. The highest price over the guide we experienced during that year was $165,000 and
there were 5 buyers. This trend continued until the peak of the market was determined in our area
in the period of September - November 2021. Properties were selling well over price indications in
even off market sales which kept the stats for the days on market to an absolute minimum.

2022 has been a great start but the market is no where near as competitive or active and this has
been evident in Auction clearance rates only been as high as the 78% range and more recently as
low as 54% last weekend (16/5/2022 according to domain.com.au) The average days on market are
also more in the range of 30 – 45 days and prices achieved are normally within the price guide
advertised with up to 3 buyers competing in some instances… which is still better than 2019..

In terms of growth, results and what’s to come… the property market is a cycle and a quick look at
history will provide confidence in this, even as recently as 2016. We’ve experienced up to 32%
growth in some suburbs in the last 18 months, so if the predictions of the market coming back 12-
15% as predicted… that’s still an 15- 18% growth which is considerable for most homes.

For more information on what you can do to improve the value you of your home, the selling
process or any real estate questions – reach out anytime !

Kindest,
TKA.