Strong winter selling season continues

HOW is the market tracking this winter?

Ray White chief economist Nerida Conisbee said while hot property markets are generally seen as a driver of listings, the reality is that there is a point that it can get too hot.“Most buyers are subsequent sellers so when markets get too hot, there does tend to be a sense of nervousness amongst sellers that it is difficult to get back into the market,” Ms Conisbee said.“The good news is that stock levels are up, and not just compared to last year but also compared to the previous year (pre-COVID). In fact, for listings, this is the strongest start to winter we have ever recorded.”Nationally, the Ray White Group listed 8,008 properties to date this winter - 29 per cent higher than 2019.While it’s easy to track the number of properties for sale, tracking serious buyers is a little more difficult but if you make a bid at an auction, it can reasonably be assumed that you are a serious buyer.Ms Conisbee said not surprisingly, the number of active bidders began to accelerate towards the end of September 2020 as it became apparent that the recession was likely over.“By December, following the announcement of a number of vaccines and a further interest rate cut, conditions really began to surge and by late February we were seeing the highest number of active bidders ever recorded,” she said.“Since then, bidding activity has slowed a bit, however it’s still substantially higher than previous winters. Activity seems to have stabilised a little but it’s still much higher than what we have seen before.”Across the country, Ray White has recorded six registered bidders per auction on average this winter while average active bidders sits at 3.5.Ms Conisbee added that the price surge we are experiencing is being driven by a lot of things.“Very low interest rates, freer lending and high household savings rates are obvious drivers,” she said.“However high levels of confidence from booming economic growth, a large number of incentives available, particularly for first home buyers, and a general desire for bigger homes and more space have also contributed.” In Sydney, the lockdown continues and so do online auctions. Since the beginning of restrictions in late June, Ray White Sydney has booked an 85 per cent clearance rate and on average properties are selling 12.6 per cent more than the highest offer prior when they reach auction day.This weekend, smart sellers are continuing to take their homes to auction including Loft 1/6 Thames St, Balmain (pictured above) through Ray White Balmain agent Benjamin Martin.Mr Martin said the lockdown hasn’t affected the campaign and prior to the closure he took 17 groups through the apartment while he completed 51 private inspections afterwards.“There hasn’t been any decrease in the level of buyer demand on this property because of the rarity of the block,” Mr Martin said.The Thames Street apartment is part of the old Christian Brothers at Balmain school block. While still retaining the existing facade, the old school building facing Thames Street has been masterfully converted into 12 loft-style apartments.

In Melbourne, Ms Conisbee said buyers’ desire for more space has become apparent and price growth in outer suburban areas is more pronounced than the rest of the country.“The Mornington Peninsula saw very strong growth and Flinders topped the list, almost reaching a $2.5 million median price. All the strongest growth suburbs are located far from inner Melbourne, on the outskirts of the city,” she said.Cheltenham, on the way to the Mornington Peninsula, has become a popular auction spot, spearheaded by the Ray White Cheltenham office. Director Kevin Chokshi rarely misses a weekend of auctions and this Saturday will be auctioning off 2 Rosewarne Ave, Cheltenham to an audience of developers and families.Meanwhile, Ray White Cheltenham agent Angela Limanis will help her interstate vendors offload 23 Allnutt Pde, Cheltenham after almost 10 years. The 730sqm home has been completely renovated with an extra storey added and a master suite in what she said is a The Block level renovation.Original 1900’s Californian bungalows in good condition and on the market like 7 Garden Ave, Mitcham (pictured above) are becoming increasingly hard to come by. Ray White Blackburn agent Chris Smout will be selling it through a hybrid on-site and online auction this weekend that he expects will be well attended. He said plans from interested buyers have been mixed.“I’ve got buyers looking to knock down the home and build their dream home because it’s a good block of land on one of the better streets in Mitcham. While other buyers are thinking about keeping the period facade and doing a modern renovation inside,” Mr Smout said.After more than 60 groups inspected 1/120 Glenfern Rd, Ferntree Gully, Ray White Wantirna agent Paul Kalra is feeling confident he will have a host of bidders attend the auction this weekend. The Wantirna agent said interest has come mainly from younger buyers because the house is perfect for a young family.Young couples and families have also been eager to inspect 3/1 Millar Rd, Tullamarine which is being auctioned through Ray White Gladstone Park director Malek Younan. The agent has had buyers lining up since the beginning of the campaign and is expecting some competitive bidding from buyers who see a lot of value in the outer suburb market.

Another to watch is from Ray White Patterson Lakes selling principal Genevieve Hill who said her auction at 3 Artesian Place, Waterways has attracted buyers because it's a fabulous, single level home in a very unique pocket of the suburb.

"Artesian Place was designed by the developers of Waterways to attract more of the downsizers and retirees lifestyle. It's positioned a stones throw from a lake and Waterways Cafe which buyers have been loving," Ms Hill said.

Moving north to the Sunshine State, Ms Conisbee said Brisbane’s price growth picked up a bit later in 2020 but has been strong since then.“An interesting difference between Brisbane’s price growth and other capital cities, particularly Melbourne and Sydney is that the strongest price growth suburbs are inner urban. An outer suburban shift has been less apparent in Brisbane during the pandemic,” she said.Ray White Annerley agent Bevin Powell has seen this price growth in action and is expecting further great results for his vendors this weekend as he takes three popular properties to auction. No. 11 Mitchell St, Acacia Ridge and 113 Highgate St, Coopers Plains have both received solid interest from buyers but Mr Powell said the auction at 3Salford St, Salisbury will be the busiest of the three.He said buyers made up for the first week of the campaign taking place in lockdown by flocking to inspections after restrictions eased resulting in more than 70 groups attending open homes to date.On the northside, Ray White Ashgrove agent Tamara Lee will be continuing her auction hot streak after last weekend’s success with 15 Victoria St, Kelvin Grove and 20 Plant St, Ashgrove. This weekend, Ms Lee will be auctioning 31 Kenwyn Rd, Red Hill after almost 30 years with the same owner.Ms Lee said buyers are primarily interested in the location. The classic Queenslander is positioned directly opposite Gilbert Park and the Broncos Leagues Club.“The home is in a highly held location and the average time someone owns a property in this area is around 30 years - they don’t sell very often,” Ms Lee said.“There’s been a huge difference among buyers as well. We are seeing first home buyers, mum and dad downsizers and builders looking to do a renovation.”

Former rugby star Scott Barton will also be capitalising on the hot market this weekend, selling his 58 Prince St, Grange (pictured above) home at auction this weekend through Ray White Brisbane City agent Julian Gardener.

Meanwhile, Adelaide has become the most affordable city, according to Ms Conisbee who said it has the lowest median of any capital city.“The median is in fact almost half that of Sydney. Despite this affordability, it’s a city with high levels of amenity and liveability,” she said.“A big driver of affordability has been fewer higher paid employment opportunities compared to bigger cities. During the pandemic, this has mattered less, primarily because people have started working differently.“This isn’t all that has helped Adelaide. High growth in government employment has also been a driver.”This popularity has been reflected in the rate of average bidders participating in Ray White auctions across the city. Over winter, average registered bidders hit the double digits at 10 while average active bidders came in at 4.3.This weekend, the new owner of 10 Landal Boulevard, Redwood Park (pictured above) will be getting more than just a new house with current vendor and owner of Dan’s Gym, Dan Lester, giving away a membership to the winning bidder. Selling agent and Ray White Tea Tree Gully principal Sam Doman said first home buyers, young couples and investors have all been drawn to the property for the new renovation and great location.Ray White Port Adelaide agent Rick Schultz will also be welcoming new owners to a classic 1960’s sandstone family home at 2A Edgecombe St, Woodville North.“I have had double digits at every open. There’s been lots of young couples and buyers wanting to do a renovation to restore the home,” Mr Schultz said.No. 12 West Beach Road, West Beach will also be an auction to watch this weekend from Ray White Henley Beach principal Anthony Fahey who said he’s had solid interest on the property over the course of the campaign.