Manly Conveyancing

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/

Home Market Insights What is Going to Happen to the Sydney Property Market during September 2022?
• Market Insights

What is Going to Happen to the Sydney Property Market during September 2022?

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.

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.

17/08/2022

Reserve Bank of Australia hikes interest rates for a fourth consecutive month

By Stuart Marsh • Senior Producer
3:35pm Aug 2, 2022


Fullscreen
RBA increases cash rate by 50 basis points per cent to 1.85 per cent

The Reserve Bank of Australia has hiked interest rates for the fourth consecutive month, lifting the nation's cash rate target by 50 basis points to 1.85 per cent.
Today's increase marks the first time since the introduction of inflation targets in 1990 that the central bank has increased the cash rate four months in a row.
For the average borrower with a $500,000 loan and 25 years remaining, this afternoons' increase will result in a $140 a month increase - or $472 since the RBA began lifting rates in May 2022.
READ MORE: 'Historic' interest rate hike tipped to hit mortgage holders

https://www.9news.com.au/national/australia-interest-rates-reserve-bank-of-australia-august-decision/4b9f7743-0fec-4856-a563-26c6b8a56a40

17/08/2022

Premium real estate leads regional house price fall as ANZ tips 18pc nationwide property slump
By business reporter Michael Janda
Posted 9h ago9 hours ago, updated 5h ago5 hours ago

Some of the most expensive regional markets have seen the biggest price drops.(ABC News: John Gunn)
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abc.net.au/news/premium-real-estate-leads-regional-house-price-declines/101337786
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Australia's housing market is set to drop 18 per cent, according to one major bank, and new data shows regional areas are joining Sydney and Melbourne in the slide.
Key points:
• ANZ tips an 18 per cent fall for housing prices in 2022-23 before a 5 per cent rebound in late 2024
• The bank says the projection is mainly due to reduced borrowing capacity from rising interest rates
• CoreLogic says some high-end regional property markets are already falling and other areas will follow

Australia's housing market is set to drop 18 per cent, according to one major bank, and new data shows regional areas are joining Sydney and Melbourne in the slide.

17/08/2022

RBA holds rates, changes hike guidance
15:00, 02 NOVEMBER 2021
BY CMC MARKETS

At its meeting today, the Reserve Bank of Australia Board decided to:
- maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero per cent
- continue to purchase government securities at the rate of $4 billion a week until at least mid February 2022
- discontinue the target of 10 basis points for the April 2024 Australian Government bond.

https://www.cmcmarkets.com/en-au/news-and-analysis/rba-holds-rates-changes-hike-guidance_amp?gclid=Cj0KCQjwgO2XBhCaARIsANrW2X3kKb9mBKMbFpsP0V6MrBjDDpwU2PGNUnuI3UXGluNQ0B8PA5v5mSQaAuAcEALw_wcB&gclsrc=aw.ds

17/08/2022

This might be first-home buyers’ best chance to crack the market in years “You don’t have to get everything all at once in your first home. Use it as a steppingstone into upgrading as your circumstances and budget change.
“I encourage first-home buyers to exercise caution as to how much pressure they put themselves under financially when buying their first home.”
https://www.realestate.com.au/news/this-might-be-first-home-buyers-best-chance-to-crack-the-market-in-years/?fbclid=IwAR1MqzlRqGwlEXGMLdE1R9wDaAGj-6Xl6VEvLRenZhWuGRB0mxpi-qJWUG0

17/08/2022

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

17/08/2022

Dominic Perrottet says the move will let more first homebuyers into the market by replacing an upfront cost with an annual property tax
Stamp duty is a major upfront cost for first home buyers, and in NSW will be gradually replaced with an annual property tax.
New South Wales is getting rid of stamp duty for first homebuyers in this year’s state budget. What will it mean for buying a home? And what will be put in place instead?

Dominic Perrottet says the move will let more first homebuyers into the market by replacing an upfront cost with an annual property tax