Sales volumes are trending up, but listings volumes are significantly down with more buyers pivoting to off-market property to secure their homes, according to the Real Estate Buyers Agents Association of Australia (REBAA).
The latest Cotality data shows that annual sales activity has increased nearly three per cent, however, total stock levels are down nearly 15% over the same period.
Listings in Darwin have fallen by a staggering 45% while sales activity has soared 60% over the past year, according to the data.
Every capital city has recorded listing reductions in the double digits, with Hobart down 33%, compared to the same period last year.
Total stock levels are down nearly 20% compared to the five-year average, according to Cotality.
REBAA President Melinda Jennison said the market mismatch was not only pushing property prices higher but underpinning a pivot to off-market properties by increasingly desperate buyers.
“When you have stronger sales activity but significantly lower listings available, it’s clear that more homebuyers and property investors are seeking off-market opportunities in an attempt to secure their next homes and investments,” Ms Jennison said.
“However, with property prices rising in most jurisdictions, off-market properties are not the easiest to access for the everyday property buyer.”
It is estimated that up to 20 per cent of properties nationwide – or about 100,000 per year – are sold off-market, however, accurate figures are hard to come by given the private nature of these property transactions.
Ms Jennison said in robust market conditions, buyers must understand the pros and cons when searching for off-market real estate.
“Number one, it is not easy for buyers who may purchase a home a few times in their lifetimes to find off-market property,” she said.
“This is because they simply don’t have the networks or the relationships with sales agents to be on their radars when these types of properties become available.”
It’s also important for buyers to understand the difference between a truly off-market property and one that is marketed to databases pre-market, she said.
“If buyers receive an email from a sales agent with a ‘first look’ at a property that already has all the snazzy photos and styling, this property is not off market,” she said.
“It is part of a marketing campaign for a property that will eventually be listed for sale publicly – unless someone pays a ridiculously high price for it that the agent and the vendor simply can’t ignore.”
Ms Jennison said off-market properties, or pre-market properties that are often all included under the same definition, are just that – they are promoted to a very select group of people, including buyers’ agents, because the vendor has opted to sell under the radar.
“Often, even in strong market conditions such as now, vendors desire a private sale over anything else, perhaps because it is a deceased estate, they are going through a divorce, or they simply don’t want the hassle of open homes every weekend,” she said.
“Purchasing off-market can be a sound strategy because it reduces competition with other buyers, especially when listings are thin on the ground like they are at the moment.
“That said, although they are considered the ‘Holy Grail’ of real estate, buyers must undertake the necessary due diligence to ensure they are not being sold a lemon wrapped up in a shiny off-market cloak that may also be overpriced.”
ENDS
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