GROWTH EASING IN MOST REGIONS AS NEW LISTINGS RISE
CoreLogic’s national Home Value Index (HVI) rose 0.7% in July, marking a fifth consecutive month of housing value recovery. Since finding a floor in February, the national HVI is up 4.1%, following a -9.1% decline from record highs in April 2022.
Nationally, home values remain -5.3% below the April 2022 peak, with only Perth, Adelaide and Regional South Australia recording a new cyclical high in dwelling values through July.
While housing values are continuing to record a broad-based rise, the rate of growth has marginally lost momentum over the past two months, slowing from 1.2% in May.
CoreLogic Research Director, Tim Lawless, says the most substantial reduction in growth has occurred in Sydney.
“After leading the upswing, the monthly pace of growth in Sydney housing values has halved from a recent high of 1.8% in May to 0.9% in July. Sydney has also seen a significant rise in the number of fresh listings added to the market, 9.9% higher than the same time last year and 18.0% above the previous five-year average. An increased flow of new listings provides more choice and may be working to reduce some of the urgency felt among prospective buyers,” he said.
Brisbane and Adelaide accelerate
Brisbane and Adelaide saw the monthly pace of growth accelerate in July, leading the pace of gains across the capitals with housing values up 1.4% across both cities. Although the trend in new listings has risen in these cities, Mr Lawless said the number remains well below levels from a year ago and the previous five- year average. Canberra was the only capital city to record a decline in values in July, down -0.1%, while Hobart values were unchanged.
Premium housing markets lead slow-down
The slowdown in value growth has mostly been driven by an easing in gains across the upper quartile of the market. While growth in the upper quartile of the combined capitals index diminished from 1.8% in May to 0.7% in July, the lower quartile (1.0%) and broad middle of the market (0.9%) remained resilient in July, following a smaller, but more consistent rate of growth over previous months.
“Some resilience in growth across the middle and more affordable end of the market aligns with housing finance data which has shown a stronger bounce back in the value of lending to first home buyers and investors over recent months,” Mr Lawless said.
“These segments tend to be more active across the middle to lower end of the pricing range where competition to purchase a home may be more intense.
“Premium housing markets tend to lead the cycles, so the slowdown in the pace of growth could be a sign of a broader easing in the pace of growth over the coming months.”
Regional markets lag capitals
The combined regionals index rose 0.2% in July compared with a 0.8% increase across the combined capitals index.
Monthly change in capital city home values
MONTHLY ANNUAL
Sydney p 0.9% q 2.1%
Melbourne p0.3% q 4.0%
Brisbane p 1.4% q 6.2%
Adelaide p 1.4% 0%
Perth p1.0% p 3.4%
Hobart 0.0% q 11.4%
Darwin p0.3% q 1.2%
Canberra q0.1% q 7.9%
National p 0.7% q 3.4%
DOES LISTING EXCLUSIVELY MAKE A DIFFERENCE?
When selling your property, choosing the type of agency agreement can greatly affect your selling experience and result.
An exclusive agency agreement ties you with a single agent, who assumes full responsibility for selling your property, often within a set timeframe. This can simplify your selling process, allowing you to track one agent's work, and incentivise them with bonuses or commission scales based on sale timelines or price. The downside though might be being stuck with an unsatisfactory agent without the ability to switch easily.
On the other hand, an open agency agreement allows you to list with multiple agents. This creates competition and provides flexibility, but might result in less commitment from individual agents due to the risk of not securing the sale. An agent might spend months working on the sale of your home, only to find that another agent gets paid after showing just one buyer.
Overall, agents like all business people prioritise where they will likely see the greatest return. In an exclusive agreement, knowing the full reward will come their way upon successful sale, agents are more likely to invest more effort.
Seek professional advice to understand which agreement type suits your situation best.
HOW TO DE-PET YOUR HOME WHEN SELLING
Preparing your home for sale requires special attention if you have pets. As pets are part of your family, their presence is part of your daily life, but it might not be as acceptable to potential buyers.
To avoid deterring potential buyers, it's crucial to 'de-pet' your property before marketing it. Here are some tips to help you make your property pet-free and ready for sale:
Relocate your pets:
Your pets, regardless of their size or type, can affect the overall appeal of your property due to their odour and presence. Temporarily relocating pets before property viewings can make the place look cleaner and less pet-centric.
Smaller pets like goldfish or budgies can be moved easily, while larger or more exotic pets might require more creative solutions. If complete relocation isn't possible, try moving their habitats like cages or houses into the garden. They can be relocated to a friend's or family member's house, or kennelled for the duration of the sale process, freeing you to focus on making the property look its best.
Conceal pet items:
All visible traces of pets, including food and water bowls, litter trays, toys, and beds, should be removed from sight. Any remnants like chewed toys or random animal blankets can deter potential buyers. If you have items like bird cages or aquariums that might add to the property's aesthetic, consult with your agent or home stager on whether to keep them.
Repair the damage:
Pets, especially active ones, might cause noticeable damage to your home or garden. Go room by room, listing any pet-induced damage like marks on walls, chewed rugs or furniture, urine stains, etc., and start repairing where possible. Structural damage, like deep scratches on doors or a chewed cat flap, should be addressed properly.
Deep clean your property:
Deep cleaning is crucial to remove pet hair, stains, and dander that a standard vacuum might miss. Animal hair should be removed from all furniture, bedding, and curtains. In addition, consider professional cleaning for stubborn urine stains and use deep-cleaning appliances for carpets and rugs.
Address the odour:
Living with pets for a long time can make you desensitised to their odour, but potential buyers will notice it. If there's still a lingering smell after cleaning, consider a deeper level of cleaning to deal with pet residues that you might have missed. A professional steam cleaning service could be beneficial in this scenario.
Refresh the air:
You can also use fresh fragrant flowers, oil burners, candles, or air fresheners to improve the property's aroma. However, avoid using products that only mask the smell rather than eliminating it, as this can create a strange combination of odours.
After performing these tasks, it's advisable to have a pet-free friend assess the environment for any residual pet signs. Although it's extra work, preparing your pet-inhabited property for sale will make it an allergy-free and clean space, appealing to a wider range of potential buyers.