MESSAGE FROM OUR MANAGING DIRECTOR
Over the past few months , it ’ s been fascinating to witness the shift in media reporting on the state of the Australian property market . It has quickly become foreboding . True , it ’ s not as foreboding as it was this time two years ago when media commentators were unanimous in predicting a drop in property values of up to 30 per cent ( only for them to rise by 30 per cent !). However , the overall message being presented is clear and consistent that the market is struggling .
It ’ s true that the dynamics of the market have changed since the start of this year . The simplest way to illustrate this is to look at listing numbers and sales numbers . Across Australia , we listed 7,700 properties for sale in March and sold 6,100 . In the same month last year , we listed 7,300 properties for sale and sold 6,900 . The average number of active bidders per auction fell from 3.5 last March to three in March this year .
The problem with the above paragraph is that it lacks any meaningful context . It simply compares current activity against what was the most remarkable period of real estate activity in this country ’ s history . For context , we sold $ 6.7 billion worth of property in Australia in March , which was $ 300 million more than the value of property sold as of March 2021 ( highlighting the increase in property prices over the past 12 months ). It was our biggest March result ever ,
and our second biggest month ever . While our average bidder numbers dropped , they ’ re the highest numbers recorded at any time other than in 2021 .
Clearly , as reported , the prospects of increasing interest rates is a downside risk for our housing markets . We ’ ve always believed that community expectations of where interest rates are going is more important than any actual interest rates movements . Is it fair to think that current buyers are already factoring in higher interest rates in their decision making , given the extensive amount of media commentary on the subject ? If so , how much higher ?
If and when interest rates change , we will discover answers to these questions .
We know that most of our customers sell and then buy in the same market . Accordingly , ensuring that every sale campaign obtains the best possible result available in the market is critical to creating value for our customers . We trust that the information available in this edition of Ray White Now , together with the knowledge and commitment of our local members , empowers all of our customers in their decision making .
Dan White Managing Director Ray White Group
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