GROUP UPDATE
It might not have been a big spring bounce , but it was definitely a bounce . And we ’ ll happily take it !
We recorded $ 6.7 billion worth of sales in Australia and New Zealand in November 2022 . While this was a solid lift from $ 6.1 billion in October , it was 33 per cent less than what we recorded in the heady days of November 2021 .
It ’ s understandable that many may look at the comparison to our November 2021 results and think that we ’ re in a soft market . But just to illustrate how strong the market was last November , our November 2022 sales results were well up on October 2020 and October 2019 , by 20 per cent and 40 per cent respectively .
What didn ’ t bounce in November , was the value of new listings . The value of residential stock listed for sale was $ 9 billion , only a slight increase on what we listed in October .
If we look back over the big trends in the Australian and New Zealand real estate story post the start the Covid , there were three acts .
The first act started with a bang . More properties were being sold than were being listed . The process of selling properties and achieving a premium price was flowing well , and new listings continued to rise . These are the hallmarks of a great market for our industry .
Looking at a combined Australian and New Zealand market , this act ended in around June 2021 , when the number of sales per month started to decline .
The second act saw new listings continue to rise as the amount of property being sold was in decline . During this period , the amount of property on the market began to climb for the first time . ‘ Stock in ’ wasn ’ t a problem , though we needed to be more precise in how we managed the sale of our listings to achieve results that met the expectations of our vendor customers .
The third and final act started in around April 2022 . The number of sales continued to decline , as did the number of new listings . We had not experienced a decline in new listings since early 2020 . And so ‘ stock in ’ has also become an area of acute focus .
The conditions we ’ re now in are emblematic of conditions most common in our history . It ’ s the conditions we actually know best . It ’ s a market that rewards those who seek to be proud of every relationship and transaction . We must work hard and be patience to build trust with our customers , and work as a broader team to bring the most value to them .
So we come to the end of 2022 , our 120th year as a group . We started the year with the ambition to act and deliver value like a company that has capacity and resources of a powerful company , but retain the same energy and take risks like Ray did all those years ago .
Our family expression was perhaps best expressed at Connect in August . Learning , shared experiences , recognition , friendship across the most diverse audience of 3,000 members .
We realised new initiatives , including radar . raywhite . com , the expanded Pulse suite to include Profit and Property Management , and the broad adoption of NurtureCloud in Australia . We continued the momentum that started last year in our Economics team and Performance team .
Some things don ’ t change . The importance of quality leadership across all levels of our group remains evergreen . The best technology , the best performance programs , the most useful economic insights have no traction if not supported by strong leadership . You can ’ t bypass it .
We ’ re unashamedly obsessed with market share . Do we have momentum ? Are we supporting our members to be more effective ? Are we retaining and attracting talent ? In Australia we increased our market share to 11.7 per cent , an increase of 0.7 per cent . In New Zealand , we ’ ve grown 1.16 per cent to 23.74 per cent . Both of these market share figures are at record highs .
During November we were responsible for over 21 per cent of all scheduled auctions across Australia and New Zealand . That is 5 times more than the next largest group , reinforcing our position as the Competition Creators™ .
On behalf of my family and our entire corporate team , I would like to thank all of our members for their hard work and commitment throughout the year . We wish everyone the best for the holiday season and look forward to making a strong start in 2023 .
Dan White Managing Director Ray White Group
2