The explosive recovery in the Australian real estate market has resulted in happier sellers, with sales price satisfaction doubling in a year.
A survey of 40,000 respondents from the RateMyAgent real estate agent review platform found that overall net happiness increased from 20% in December 2018 to 41% in December 2019.
This was largely driven by the Melbourne and Sydney metro, with satisfaction rates for both cities rising five to six times between December 2018 and December 2019.
South Melbourne was the happiest area and Far North Queensland the most unhappy, while Victoria overtook Tasmania as the happiest state, and metropolitan areas rose ahead of regional areas.
Josie Leeson recently sold his three bedroom apartment in Sydney’s Concordia, where he has lived for the past 13 years. He wanted $ 1 million and after just under three weeks on the market he sold for $ 995,000.
“It was really cool,” he said. “We had two openings, 13 people on the first and two outgoing contracts, another 10 people on the second. The market response has been very positive and immediate. “
The 46-year-old said that while she was satisfied with the price, the moment when the market awaited recovery was not a determining factor. “Because we were buying and selling in the same market, that didn’t have any impact on us,” he said. “We sold when it was right for us.”
CoreLogic data for January showed that the housing sector continued to recover. Australian homes gained 0.9 percent in value for the month, with Sydney up 1.1 percent and Melbourne up 1.2 percent.
The nation’s annual house price growth rate in January was 4.1 percent, the highest 12-month rate since December 2017. The median home price in Sydney for January was $ 862,814, while the Melbourne’s median was $ 681,925 and Canberra $ 630,078.
RateMyAgent founder and CEO Mark Armstrong indicated two key trends in the market. “The first is the offer in 2019 as soon as it fell off a cliff – the supply has fallen by almost 20% across the country,” he said.
“In some more established areas, particularly where people are not under pressure to sell (as they don’t) have a lot of debt on their properties, people have just said,” I’m just waiting. “In East Melbourne there wasn’t much to buy, so the competition really started to heat up. “
The other factor was the price slump that started in late 2017.
“The market will always be adjusted after a strong growth that has led up to 2018. But the natural adjustment also took place in conjunction with the real commission, the banks were scared, the lending policies strengthened,” he said.
“So you’ve had this kind of double grimace. You also had an election there. Traditionally, markets have stalled until the election, which has reduced the supply. This bounced the market (later), but I don’t think it’s sustainable. “
Armstrong said he expected the market to “go into a more normal cycle” when it finds its balance, which would probably mean a decline in the happiness of the stated sales prices.
“Anecdotally, when we talk a lot with real estate agents we talk about the level of supply until 2020 that is likely to really grow,” he said.
TOP 10 MOST HAPPY AREAS
Southern Melbourne VIC (68%)
• Mallee VIC (62%)
• East Melbourne VIC (60%)
• Inner West Sydney NSW (59%)
• Outer East Melbourne VIC (58%)
• North Melbourne VIC (57%)
• Inner Melbourne VIC (57%)
• Hobart TAS (56%)
• North Shore Sydney NSW (55%)
• Inner Sydney NSW (55%)
TOP 10 MOST DISCOVERED AREAS
• Far North Queensland QLD (15%)
• Peel WA (19%)
• Wide Bay-Burnett QLD (19%)
• Central Queensland QLD (21%)
Southern and Hills SA (21%)
• Metropolitan Perth WA (23%)
• Mid North Coast NSW (28%)
• Southeast QLD (regional) (32%)
• South East Queensland (Metro) QLD (33%)
• South West WA (34%)