A MESSAGE FROM OUR MANAGING DIRECTOR
There was some trepidation among our members as they returned to work after the holidays . What would be in store for them ? It ’ s understandable that the intensity of negative media commentary over the holidays seeded an expectation that things would be challenging .
But the feedback over the past six weeks is that market activity , especially buyer interest , is stronger than when we broke for holidays - significantly stronger in some markets . This activity reminds us that buyers can often move together in new directions , influenced by each other ’ s movements rather than by instruction .
Higher levels of buyer activity were witnessed in our auction bidder numbers . In November we averaged 2.2 active bidders and 3.6 registered bidders per auction , which increased in January , and so far in February we ’ re averaging 2.8 active bidders and 4.9 registered bidders . Every January for more than 30 years , Ray White Surfers Paradise hosts The Event on the Gold Coast where over 100 properties are auctioned in one day . This year ’ s Event was again another great success , with hundreds of people attending , and very strong bidding from local , interstate and international buyers at levels ensuring sensational results .
However , this increased buyer activity hasn ’ t yet resulted in success on the ‘ scoreboard ’.
January is a tricky month to judge sales activity overall , but in our first month of 2023 , we wrote a total of $ 2.9 billion in unconditional sales across Australia , down 23 per cent per cent on the year prior .
The rise in buyer traffic has contrasted with a decline in new listings . Sales volumes were curtailed by less property coming to market . In December 2022 we listed
3,441 properties ( down 22 per cent on December 2021 ) and in January 2023 we listed 4,945 properties ( down eight per cent on January 2022 ).
Over the years and through many cycles , we ’ ve often seen strong buyer activity lead to more listings and then to a general upswing in overall activity . The evidence of strong activity creates confidence to come to market . While the evidence of strong bidding is clear , many potential vendors seem to remain reluctant to come to market and take advantage of the lack of competition .
There are many contrasting factors at play at the beginning of this year that will influence market activity . The Reserve Bank of Australia ( RBA ) has been very clear on its intention to raise interest rates further . We have a state election in New South Wales . However , we expect more migration , and tourism and investment from China given the lifting of restrictions , and alternative investments outside of real estate that offer strong and stable financial returns are hard to find .
Our economics , technology and data teams combine and analyse the data collected by more than 11,000 members across Australia and New Zealand . We ’ re in a unique position to listen closely to what ’ s happening in the market and report on it to our customers to ensure they make the best real estate decisions in 2023 .
We look forward to sharing our insights with you throughout 2023 . Our local Ray White members would be delighted to discuss this edition of Ray White Now with you further .
Dan White Managing Director Ray White Group
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