Market Update | 18 May 2020
Market Update | 11 May 2020
After much anticipation, last Friday saw the Federal government officially reveal its roadmap for getting us back to a COVID safe Australia, with hopes to see life returning to normal by the end of July.
The three stage plan, outlining a gradual easing of social distancing restrictions, will see each state and territory implement the steps at their own pace. Victorian Premier, Dan Andrews has made his first announcement in relation to this earlier today, which will allow up to 5 people to visit your home from midnight tomorrow.
Officially, Victoria’s State of Emergency has been extended until 31st May, with Mr Andrews encouraging Victorians to work from home over the next three weeks if they can.
‘I don’t want to see that change in the next three weeks. The fact that we’re going to have literally hundreds of thousands of people visiting family and friends, that’s a big step and a lot of movement that wasn’t happening. We have to be careful not to do too much, too soon’.
Victoria’s Chief Medical Officer, Brett Sutton, has also said that handshakes and hugs are still not recommended at this time.
The gradual reopening of the economy will mean that funerals, weddings, church gatherings and auctions will be able to have more people in attendance than previously allowed. The REIV is currently waiting on direction from the Victorian Government on resuming public auctions and open for inspections.
‘Sales and rental open for inspections and public auctions can safely operate with crowd restrictions, social distancing and other measures. With the flattening of the curve, it is time to ease the restrictions on the real estate industry and help kick start the stimulus for our state’s economy,’ Real Estate Institute of Victoria [REIV] President, Leah Calnan, has said.
The real estate sector currently employs thousands of Victorians, with property transactions contributing over 45% to Victoria’s taxation revenue.
Nurture Leads & Inspire Confidence
The business of real estate touches two sides of human nature. On one hand, buying and selling a home is emotional, and on the other it’s a decision grounded in facts and figures.
Now, more than ever, those facts and figures are critical to agents and their clients, winning the listing, informing authoritative discussions with sellers and buyers, and securing the next sale.
Domain is supporting agents’ digital transformation, now and in the future, by making its Platinum-exclusive data and analytics – Market Insights and Market Trends – available to every customer for a limited time.
And as agents look ahead and nurture ongoing relationships with potential buyers and sellers, to ensure a vibrant business after COVID-19, Market Trends and Market Insights are an essential to fostering those leads.
This unique Domain data helps agents to stay across suburb-level market movements, building trust through insightful, well-informed conversations, and positioning themselves as the agent of choice for when a vendor is ready to list.
Harcourts Solutions group director Brendan Whipp knows the power of Domain’s insights well.
His Brisbane-based team has been using fast-tracked data and analytics from Domain’s Market Insights and, more recently, the newly launched suite of Market Trends to inspire confidence among buyers and sellers in an evolving COVID-19 market.
He said agents generally had access to data that was quarterly, broad and based on state or city level stats, but that didn’t help to isolate the specifics that apply to individual clients.
However, the timely data and analysis provided by Market Insights and Market Trends do just that – they are precise to a property, and an area, so conversations and campaigns are more bespoke and incisive.
“The good thing about Market Insights and Trends is that it is more relevant to the actual client they are sitting in front of,” Whipps said of his agents.
“They have the ability to drill down suburb by suburb, and the data is timely – the past seven days, or 14 days. When you break it down, it becomes a relevant conversation with vendors and buyers.
“There is an appetite for what is happening right now.
“We transact circa 600 to 800 sales a year, so we have our finger on the pulse and we come with the credibility to say ‘this is what we are seeing within our business’, but when you can also say ‘this is what is happening in your suburb’, coupled with the strength of our team, it is certainly very powerful.”
Fletchers auctioneer and director Tim Heavyside, based in Melbourne’s eastern suburbs, said sharing Domain’s sharp insights with buyers, in particular, motivated them to move forward and ink the contract.
Domain’s up-to-the-minute, tailored data provides the foundation that reassures buyers of a property’s value and appeal.
“It is information which is very important,” Heavyside said.
“You might be explaining statistics to a buyer to give them the confidence to act. A lot of the time they need reassurance that they are making a good decision, and not paying too much.”
Market Insights, and the new Market Trends, are accessible to Domain Platinum, Gold, Silver, Branded and Basic customers from April 30 to August 31, 2020.
Domain Market Insights helps agents shape an astute campaign based on property-specific market dynamics and analytics.
Agents can view supply and demand trends, estimates of property values (including rental prices and yields), compare sales strategies, time-on-market performance, and explore breakdowns of the postcodes potential buyers are coming from.
Market Trends provides insider knowledge on suburbs and surrounding areas, positioning agents as the agent of choice in their market.
Customers can explore data around supply and demand (revealing current supply, competition and new listing trends in a specific suburb and surrounding area), potential interest (higher-intent activity such as requesting a contract, inspection, or phone and email inquiries), and Homepass Check-ins (to monitor and track property seeker interest, now and after COVID-19).
Domain’s property-specific Market Insights were released earlier this year, followed by Market Trends in late April, and the Domain Group Director, Commercial, Tony Blamey said last month the Insights series would be added to.
The suite will be expanded to include professional performance insights, to assist agency directors and principals to attract, retain and mentor talent based on results.
To find out more, go to: agent.domain.com.au/domain-insights/
Written by Emily Power.
Market Update | 2 & 3 May
Auction Snapshot | 27 April 2020
With ANZAC Day services conducted remotely this year, Australia’s most significant day of remembrance offered the opportunity for Australians to come together and pay their respects in new and unusual ways. 🇦🇺
For many, lighting a candle in the street and tuning into The Last Post via radio or livestream was a favourable way to mark the occasion. For others, it meant bringing the family together and baking ANZAC Day Biscuits for all to enjoy.
As we look to the future, new data shows that Melbourne’s property market is expected to rebound strongly as restrictions ease. Prior to the COVID-19 outbreak, Victoria achieved record-breaking growth for the March quarter, which saw house prices rise 2 per cent and median house values reach $918,350.
In response, Real Estate Institute of Victoria [REIV] President, Leah Calnan, said ‘Real Estate had a strong start to 2020; property values have reached new heights across the state during January, February and March. Our industry is strong and we will survive Coronavirus. The desire for Victorian real estate is high and when this is over we look forward to more fantastic results.’
In the meantime, it seems that upsizers and first-home buyers are keeping the industry on its feet, with buyers taking advantage of the slowdown in order to either upgrade or enter the market for the first time.
‘Listing numbers are putting a floor underneath prices because there are fewer, so there may be more competition for properties keeping prices steady. It does make upsizing more affordable. It helps people get onto the property ladder too,’ said Domain Senior Research Analyst, Nicola Powell.
For any advice on selling in the current market, please contact me.
Auction Snapshot | 18 & 19 April 2020
The REIV has recorded a clearance rate of 78% for the weekend, which saw 103 auctions and 92 private sales take place, bringing in a total of $133 million for Victoria.
In a recent news editorial, Domain revealed entry-level homes continue to remain active despite broader economic uncertainty across the country.
‘Many first-home hopefuls with secure jobs who have spent months looking for a property and missed out at auctions during the recent market rebound are keen to snap up a place. While they’re competing with others well advanced in their search, few new buyers have started seriously looking, making it a little easier than two months ago,’ writes Domain Senior News Producer, Elizabeth Redman.
As purchasers now find themselves in a buyer’s market, homes at more affordable price points are expected to increase in demand, with record low interest rates and last year’s loosened credit restrictions providing additional support to those looking to enter the market.
In Fletchers news, Fletchers Canterbury Partner & Auctioneer, Steven Zervas – Partner and Auctioneer – Fletchers Real Estate, held a successful auction online on Saturday, which saw several bidders compete for a charming single-level, 3 bedroom home at 6 Epsom Avenue in Epping. A total of 6 bidders and 21 bids later, the home sold under the hammer well above expectations.
Reflecting on the success, Jeremy Desmier, Director & Auctioneer, BA, CEA – REIV, said, ‘it was a great call. Amazing example of rapidly adjusting to change and nailing it! Great work to the Fletchers and Real Time Agent teams that made this online auction possible’.
Results. It’s a Fletchers thing.
Market Update | 14 April 2020
In lieu of online auctions, the long weekend brought several updates for the property industry as families across the country celebrated Easter in isolation.
Following an update to the Consumer Affairs Victoria website last Thursday which saw private inspections for tenanted and occupied properties banned, the Victorian government has now reversed the decision after industry-wide backlash.
Real Estate Institute of Victoria [REIV] President, Leah Calnan, said that the reversal showed the government was willing to listen to the industry about the efforts they were taking to be compliant. ‘They may not fully understand that agents can practically perform their duties with all of the government’s directions. We provide shelter and that’s an essential duty,’ she said.
In order to overturn the decision, 26 prominent real estate agents across Melbourne banded together to sign an email addressed to Premier, Daniel Andrews, State Treasurer, Tim Pallas and Minister for Consumer Affairs, Marlene Kairouz. This included Director & CEO, Bradley Brown, on behalf of Fletchers, alongside representatives from the REIV, Domain and @REA Group.
The email stated, ‘if shelter is a basic human need, then the ability for people to find shelter, which in our society is predominantly through a real estate agent, is paramount’.
In other news, 2/962 Burke Road, Deepdene was sold by my team and I prior to auction over the weekend. The 3 bedroom, sun-filled sanctuary drew interest from young families and keen investors alike, featuring a stylish kitchen with stainless streel appliances, north and south alfresco courtyards and close proximity to schools and cafes.
Results. It’s a Fletchers thing.
What You Can Expect From An Online Auction
An online auction provides an experience as close to an onsite auction as you can get. Aside from the way you participate, by accessing an online auction ‘room’, everything else is essentially the same as what you would experience at an onsite auction.
The auction is conducted by the same rules, it is transparent, there is two-way communication and the potential outcomes are the same. The property may sell under the hammer to the highest bidder, may pass into the highest bidder, or be passed in on a vendor bid. If the property sells to the highest bidder, contracts will be exchanged and a deposit paid. If passed in to the highest bidder, the agent will negotiate exclusively with this party. If passed in on a vendor bid, the agent will proceed to negotiate with all interested parties.
I am interested in a property that has an online auction. How can I bid?
Fantastic! If you are interested in a property, please contact the listed agent and provide your name and e-mail address. You will receive a comprehensive e-mail outlining how you can register to bid, and how you can participate in the process on auction day.
What are the options I have to participate in the auction?
There are multiple ways. You can register to bid and ‘attend’ the auction via a Google Hangout, where you can watch the auctioneer in action. If you don’t have a smartphone or don’t feel comfortable using this option, you can also ‘dial in’, by calling the number provided in the registration e-mail. There is a pin code you will need to enter in when using this function. Finally, you can also visit a link that allows you to watch the bids as they progress, which can be done in conjunction with either of the two options outlined above.
The auction rules will be read out as normal by the auctioneer and can also be accessed by bidders when they register. The Vendor’s Statement/Section 32 can be requested from the agent for your review prior to the auction as normal.
Are the rules of an online auction any different to the usual auction method?
No, the rules are the same. For example, if you’re successful on auction day via an online auction, no cooling off applies.
How do I sign a contract if I’m the successful bidder?
We are fully equipped with offsite auction contract signing, which means our vendors and purchasers can sign contracts from anywhere in the world! Deposit and residual amounts are automatically calculated, as well as settlement terms. You will receive the contracts via e-mail to sign and an executed copy is automatically sent to our office, the vendor, purchaser ad each party’s conveyancer.
How do I pay the deposit if I’m successful?
You will need to ensure that you have a daily EFT limit of at least $5,000 prior to the auction. In the case you are the successful bidder, you will be required to pay a $5,000 deposit immediately after the auction, with the balance payable ASAP. You will then need to immediately email a copy of the deposit receipt to the agent.
How can I arrange an inspection of the property prior to the online auction?
Contact the managing agent of the property. You will receive a short questionnaire via e-mail or text message prior to your inspection to fill out. All inspections are by private appointment, in line with current restrictions in force. If you wish to attend the inspection with a partner, family member or friend, you will need to inspect the property one at a time, in line with current social distancing rules, i.e. one person can wait in the car whilst the other is inspecting.
Auction Snapshot | 28 & 29 March 2020
Auction Snapshot | 21 & 22 March 2020
Amidst the changing face of real estate in the wake of COVID-19, last weekend saw 930 properties scheduled for auction, bringing in a total volume of $589 million and a slightly reduced clearance rate of 66% for the state.
With ‘Stage 1’ lockdowns now in effect, the real estate industry continues to operate auctions, property inspections, sales and property management under the appropriate health and safety protocols as advised by the State and Federal Governments.
REIA President, Adrian Kelly, said that estate agents are pretty good at adapting to these circumstances, also mentioning that he was ‘not expecting to see an impact on the value of homes.’
As things continue to change, virtual tours, Facebook Live videos and online bidding capabilities are being implemented across the industry in order to assist buyers and sellers currently in the market.
Results. It’s a Fletchers thing.
