Conveyancing Parramatta

23/09/2022

https://www.domain.com.au/news/how-long-does-it-take-to-sell-a-house-in-the-current-property-market-faster-than-you-think-1169415/

Houses are taking longer to sell in every capital city in Australia, except for Adelaide – but they’re still selling much faster than they were pre-pandemic, despite the downturn.

23/09/2022

https://tasmaniantimes.com/2022/09/market-moves-mixed-for-house-prices-rent

Market Moves Mixed for House Prices, Rent
ByTasmanian TimesPosted on September 21, 2022
Media release – Real Estate Institute of Australia (REIA) President, 21 September 2022

HOUSE PRICES DEFY RESERVE BANK’S BIG CALL: REIA
The Real Estate Institute of Australia (REIA) President, Mr Hayden Groves said their latest Real Estate Market Facts, powered by Managed, has found that Australian housing prices fell over the June quarter as rising interest rates and inflation impacted affordability but not all cities and regions are experiencing price contractions.

“Combined, the June quarter of 2022 saw a decline in the weighted average capital city median price for both houses and other dwellings across the Australian residential property market. The weighted average capital city median price decreased by 1.8% for houses and 0.6% for other dwellings.

“The weighted average median house price for the eight capital cities fell to $1,012,230 over the quarter. The median house price increased in Brisbane, Adelaide and Darwin remained stable in Perth and declined in Sydney, Melbourne, Canberra and Hobart. Increases ranged from 0.4% in Darwin to 2.6% in Adelaide.

“This defies the Reserve Bank’s recent comments on potential house price falls and simply demonstrates 2022 market conditions are the adjustment ‘we had to have’.

“At a median sale price of $1,552,015, Sydney’s median house price continues to be the highest amongst the capital cities, 53.3% above the national median.

“At $530,000, Perth offers great value with the lowest median house price across Australian capital cities, 47.6% lower than the national median. Over the 12 months to the June quarter, the weighted average capital city median house price increased by 9.2%. Whilst a significant gain, this is the lowest annual increase since the December quarter 2020.”

According to Mr Groves, the weighted average median price for other dwellings for the eight capital cities dipped to $651,142, a quarterly fall of 0.6%. Over the quarter, the median price for other dwellings rose in Brisbane, remained stable in Adelaide, Canberra and Darwin and declined in Sydney, Perth, Melbourne and Hobart.

“At $790,983, Sydney’s median price for other dwellings continues to be the highest amongst the capital cities, 21.5% higher than the national median. At $410,000 Perth has the lowest median price for other dwellings across Australian capital cities, 37.0% lower than the national median.

“Over the 12 months to the end of June, 2022 the weighted average capital city median price for other dwellings increased by one percentage point.” he said.

Mr Groves said rents increased sharply after a period of relative stability with the weighted average median rent for 3-bedroom houses in the eight capital cities inflating to $506 per week, a quarterly rise of 3.6%.

Media release – Real Estate Institute of Australia (REIA) President, 21 September 2022 HOUSE PRICES DEFY RESERVE BANK’S BIG CALL: REIA The Real Estate Institute of Australia (REIA) President, Mr Hayden Groves said their latest Real Estate Market Facts, powered by Managed, has found that Australi...

09/09/2022

https://www.smh.com.au/property/news/home-buyers-still-being-misled-by-underquoting-despite-falling-prices-20220906-p5bfv7.html

Home buyers still being misled by underquoting, despite falling prices
By Kate Burke
September 8, 2022 — 12.00am

KEY POINTS
Complaints about underquoting have declined in the cooling property market.
However, the proportion of fines resulting from those complaints has increased.
More homes are selling in range of advertised guides as prices fall, but industry figures warn deliberate underquoting is still occurring.
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The days of homes for sale routinely soaring above price guides may be over, but buyers are still wasting time and money on properties they cannot afford as illegal underquoting continues.

NSW Fair Trading received 51 underquoting related complaints in the first six months of this year, and issued 40 penalties totalling $88,000. That resulted in a total of 133 complaints and 96 fines last financial year.

Fewer homes may be soaring well above price guides, but underquoting is still occurring, industry figures warn.
Fewer homes may be soaring well above price guides, but underquoting is still occurring, industry figures warn.CREDIT:FLAVIO BRANCALEONE

By comparison, there were 200 complaints and 55 fines over the 2020-21 financial year.

Complaints have fallen across the state amid the declining property market as reduced buyer demand sees more homes sell closer to and even below advertised prices, however, buying experts warn deliberate underquoting is still a concern and the figures show the proportion of fines to complaints has increased.

Underquoting occurs when an agent advertises a price guide below the reasonable estimated price they provide in their agreement with the sellers. The estimate can be a single price or in a 10 per cent range, and must be based on factors like recent comparable sales and market conditions.

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Sydney buyer’s agent Paul Mulligan, of Mulligan Property Acquisitions, said underquoting was still occurring at a similar rate, wasting the time and money of prospective buyers.

“You have people looking at $3 million properties on a $2 million or so budget, through no fault of their own. They’re spending money on building and pest inspections for a home they were never really in the running for,” he said.

Mulligan said unique or prestige homes could soar above expectations occasionally, but standard properties should not be selling hundreds of thousands of dollars above guides.

The days of homes routinely soaring above price guides may be over, but underquoting is still wasting the time and money of house hunters.

08/09/2022

https://thepropertytribune.com.au/market-insights/what-is-going-to-happen-to-the-sydney-property-market-during-september-2022/

What is Going to Happen to the Sydney Property Market during September 2022?
• 2 minute read

The Property Tribune
[email protected]
05 September 2022, 12:10 pm
Image – Canva
• Comes as interest rates are expected to increase tomorrow
• Although prices have declined, affordability remains a concern
• The NSW government received close to $1 billion in stamp duty in July alone, figures show
With interest rates expected to rise again tomorrow, what is going to happen to the property market in Sydney this month?
The Reserve Bank (RBA) is poised to lift the cash rate again tomorrow for the fifth consecutive month. This is despite just a year ago the central bank was adamant the cash rate wouldn’t rise from the record-low level of 0.1% until 2024.
Now, the cash rate is 1.85%, and is expected to rise by 50 basis points tomorrow.
“There remains a desire among consumers for greater certainty around the current rate rise cycle,” said Tim McKibbin, the Real Estate Institute of New South Wales (REINSW) CEO.
After peaking at around $1.7 million earlier this year, asking house prices have been on the decline, according to SQM Research.
Sydney

Comes as the Reserve Bank is expected to lift the cash rate tomorrow, to as high as 2.35%

06/09/2022

Another double rate hike coming but the Reserve Bank may soon slam brakes on again
by business editor Ian Verrender
Posted Yesterday at 4:48am, updated Yesterday at 10:53am

Prepare yourself for another hit.
When the Reserve Bank heavyweights gather around the board table in Martin Place tomorrow, the question will not be about whether to raise rates, but by how much.
The consensus is that we will be whacked with a fourth successive double hike although some forecasters, such as Saul Eslake, believe the RBA this month will begin to moderate the rises, scaling them back to 0.25 percentage point hikes.
Having arrived at the rate hike party unfashionably late, the Reserve Bank is increasingly coming under pressure from outside forces to maintain the momentum, particularly since US Federal Reserve boss Jerome Powell declared his intention just over a week ago to continue the fight against inflation.

31/08/2022

https://www.mortgagebusiness.com.au/economy/17104-rba-keeps-options-open-for-september

RBA keeps options open for September
By Kate Aubrey
19 August 2022

While the central bank went hard on its third consecutive 50-bp hike – without considering another option – the August minutes reveal it is not set “on a pre-set path”.
The Reserve Bank of Australia’s (RBA) released its August monetary policy meeting minutes (16 August), which revealed the board decided to increase the cash rate by 50 bps, with no indication of increasing the cash rate by an alternative amount.
At its monetary policy meeting on Tuesday (2 August) the Reserve Bank of Australia (RBA) board decided to increase the cash rate by 50 bps, taking the cash rate to 1.85 per cent.
It marked the first time the central bank had increased the cash rate in three consecutive 50-bp hikes (following June and July’s 50-bp hike), continuing the rising rate cycle that started in May.
The latest minutes revealed the board’s decision boiled down to high inflation, around 7–10 per cent, “the resilient economy” and the tight labour market, which mirror the central bank’s justification for raising the interest rate in previous months.
The minutes stated inflation was now expected to “peak later and higher” than previously thought, with a further pass-through in cost pressures of 10–15 per cent in retail, gas and electricity prices.
However, fewer options appear to be on the table since June, where the board had weighed up a 25-bp or 50-bp, or July when “members considered the possibility of raising interest rates by 25bp or 50bp”.

While the central bank went hard on its third consecutive 50-bp hike – without considering another option – the August minutes reveal it was “not on a pre-set path”.

19/08/2022

smh.com.au/property/news/for-one-type-of-home-the-property-downturn-is-deeper-than-the-rest-20220816-p5bab3.html

For one type of home, the property downturn is deeper than the rest
By Kate Burke
August 18, 2022 — 12.01am

More expensive homes are bearing the brunt of the property downturn, with new data showing prices are falling fastest at the upper end of the market.
Price falls that began for higher-end homes in Sydney and Melbourne earlier this year have accelerated and spread, as rapidly rising interest rates curb borrowing power and put downward pressure on prices.

Higher-priced homes are leading the market downturn in Sydney and other capitals.CREDIT:BROOK MITCHELL
In Sydney, dwelling values for the top quarter of the market – properties priced above about $1,637,000 – dropped 6.3 per cent over the three months to July. The middle of the market fell 3.6 per cent, by comparison, while values at the lowest quarter dropped 1.7 per cent.
The top quarter of the Melbourne market – dwellings priced above $1,121,863 – dropped 4.5 per cent, while the middle of the market fell 2.4 per cent and the lowest quarter declined 1.2 per cent. The figures do not illustrate the demand for the ultra-luxury top 1 per cent of homes, which can track a different path given buyers who have had success in business are unaffected by rising mortgage rates.
More expensive properties in the ACT and Hobart also recorded greater declines than their more affordable counterparts, with respective drops of 2.2 per cent and 1.7 per cent. Higher-value homes in Brisbane were the only market segment in Brisbane to record a decline, falling 1.4 per cent.

Dwelling values have fallen faster in one segment of the market, and price falls that began earlier this year have accelerated and spread as rising interest rates limit buying power.

19/08/2022

Price discounting on the rise as more distressed homeowners forced to sell

Sam Murden
Updated 3 Aug 2022, 1:31pm
First published 3 Aug 2022, 10:16am

Where it's impossible to find a rental
An increasing number of cash-strapped homeowners are being forced to list their properties at reduced prices in order to secure a quick sale.

New figures revealed distressed property listings rose by four per cent over the month of July, while there was also a surge in unsuccessful sales campaigns for the month and year to date.

The SQM Research data showed national residential property listings rose by 7.1 per cent to 237,336 properties.

This is higher than the previously recorded figure of 221,571 recorded in June.
A distressed property is a property that the owner wishes to sell urgently, usually due to reasons like being unable to afford to pay the mortgage. Distressed sales also include deceased estates.

The recent rise in distressed property listings has meant more vendors reducing the sale price of their home in order to sell quickly.

Listings lasting longer than 31 days and 180 days also rose by 14.1 per cent, a trend which SQM Research director Louis Christopher said will continue to rise over the remainder of 2022.
“Vendors were largely unsuccessful in their selling efforts over July. There is now a clear trend across all cities of rising listings which is being driven by lower buyer interest and is ultimately symptomatic of a national housing downturn,” Mr Christopher said.

Lower buyer interest is symptomatic of a national housing downturn.

“Properties selling under distressed conditions rose again over July and we expect further rises in the coming months. However it should be noted that the rise in distressed activity is from an extraordinarily low base.”
Prior to the pandemic, there were 15,000 properties selling under distressed conditions.
The figures from SQM Research indicated there were 6,257 residential properties across Australia selling under distressed conditions, up from 6,014 distressed listings recorded last month.
3 hours ago

Both NSW and QLD were the main drivers of the distressed selling activity, with figures rising by 6.4 per cent and 5.8 per cent respectively.

Both NSW and QLD were the main drivers of the distressed selling activity, with figures rising by 6.4 per cent and 5.8 per cent respectively.

Sydney recorded the largest fall in the capital city asking house prices to date, with a 1.3 per cent decline over the past month.
“I think the spring selling season is going to be a very tough one for property sellers and their respective agents.”
“While asking prices have been adjusting downwards since February, there will need to be further compromise if property vendors do want to sell this spring.”

From

More and more homeowners are being forced to sell their properties for financial reasons and the rise in distressed sales is having a marked impact on prices.