MID-WINTER APPRAISAL NUMBERS
DIP WHICH TIPS FAVOUR BACK IN
BALANCE OF SELLERS AGAIN
SUMMARY
• Demand continues to outweigh the supply of listings on the market
• Talk to us to understand your current appraisal to be fully informed
As the market continues to defy what most
commentators have predicted, the reliance on real time
data has never been more relevant. It’s this data that
contributes heavily to the decision that our clients
make each day.
the end of March and continued until the start of May.
During this time we saw a 20 per cent decline in the
number of new listings coming to the market. This fall in
activity resulted in there being less available listings on the
market creating supply levels that favour our seller clients.
One of the data sources that we rely on to provide a
leading indicator of things to come is the volume of
appraisals that occur across the country. Many home
owners considering selling their home initially engage a
real estate agent to provide an appraisal of what the likely
selling price will be should they take their property to
market. A property appraisal
can occur a few days before
an owner lists their property
for sale through to 12 months
prior to making the decision
to sell. In some cases property
owners may not be selling
but just want to establish a
current value of what their
property may be worth.
For us, we use this data
source as a key indicator into how much stock may be
coming to the market in the near future. So what is the
data saying right now?
Regarding house prices,
most sectors of the
property market across
Australia have proven
resilient.
Fast forward to May and June when consumer confidence
grew and appraisal numbers started to increase to levels
on par with previous years. Similarly our new listings rose
too, although there was that slight lag.
Over the past few weeks, appraisal numbers have slowly
declined again to levels that
are now less than previous
years. As of 3 August, our
network conducted 11,244
appraisals (over a 28 day
period of time), some six per
cent less than last year and 18
per cent less than 2019-20.
So assuming recent history
repeats itself, we will see a
reduction in new listings come
to the market which will again create supply levels that
favour our seller clients.
The Ray White network of members appraises
approximately 12,000 properties, over a 28 day period
of time. The start of March saw a sharp decline in the
volume of appraisals being conducted which continued
to decline through to the end of April. The number fell as
low as 5,500 appraisals. When we compare this to our
new listings that came to the market we saw the trend
follow however there was a lag of about three weeks.
The number of new listings started to sharply decline at
The data paints a clear picture however what it doesn’t
show are the reasons why there are less appraisals taking
place. Is there a fear that house prices have fallen or are
home owners concerned about being able to have an
appraisal conducted in a safe manner given the ongoing
concerns of COVID and the associated restrictions?
Regarding house prices, most sectors of the property
market across Australia have proven resilient. According
to CoreLogic capital city prices are up over the last 12
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The information is general information only, not financial advice, and does not take into account your individual objectives, financial situation or needs.