2020.11.6 After being hit hard by the epidemic, housing prices in Sydney and Melbourne have fallen sharply. However, real estate experts have recently stated that the worst has passed and people have exaggerated the subsequent impact of the epidemic. Some observers in the real estate industry have predicted that the price of residential real estate across Australia will fall from peak to trough, that is, a 15% drop. After collecting real-time real estate transaction information on its electronic transportation platform, PEXA said that in the first nine months of 2020, residential house prices in NSW have fallen by 9%, and in Victoria by 14%. However, the researchers said that during the epidemic, this kind of sampled data comes from a period of very low sales activities and should be treated with caution. The prohibition of on-site auctions has restricted the number of listings for properties in Sydney, and the situation in Melbourne is even worse. The prohibition has almost stalled sales. Louis Christopher, the general manager of SQM Research, said that we have reason to believe that… the period of the collapse of housing prices has passed. The number of auctions and clearing rates in Sydney and Melbourne have risen again, which helps to understand the actual changes in prices more clearly. Louis Christopher said: “The main indicators of the listing rate-clearance rate, housing asking prices-have begun to rise.” “However, I think Melbourne still faces many challenges because the economy has been hit harder and it is not conducive to housing prices.”

huge, with house prices falling by about 3.8% from the peak at the beginning of this year, and unit prices by about 6.8%, of which CBD apartments have the largest decline.
Shane Oliver, chief economist at AMP Capital, said that prices are affected by government subsidies and mortgage loan repayment delays, and these measures will be phased out in the next six months.
He predicts that property prices in smaller cities and remote areas will be better than those in main urban areas.

Financial markets predict that when the Reserve Bank of Australia will meet on November 3, the official cash rate may drop to 0.1% from 0.25%. The resurgence of the real estate market largely depends on the reduction in mortgage interest rates, that is, how many interest rate cuts banks will transfer to borrowers.

Four things not to do when selling a house
2020.11.6
Selling a house is an interesting thing, and everyone has their own unique opinions.
But no matter how much your family or friends insist on a certain way (of buying and selling real estate), you should always follow the advice of the real estate agent.

Under this prerequisite, when you sell your property, please do not do the following four things.

When buying and selling real estate, real estate agents can avoid the interference of personal emotions to a certain extent and make an objective valuation for your real estate.


It is not too late to hire a real estate agent
The real estate industry stipulates that sellers only need to pay a one-time sales commission to the real estate agent.
The chief agent of McGrath St Kilda, Michael Townsend, said that the level of commissions charged by real estate agents will not change according to the number of recommendations provided. Therefore, sellers should contact real estate agents as soon as possible to allow them to participate in the process of selling houses.

The sooner the seller hires a real estate agent, the more time the agent has to give advice on the redecoration of the house based on market preferences.

Townsend said: “Because sellers live in their own houses every day, they need another pair of eyes to help them find out the problems in the house that they are used to or that they have overlooked.”

"The real estate agent or house designer will analyze how to renovate the house from the overall market perspective."

They will also help you decide whether the house needs expensive renovations.

Don't find a real estate agent that is too cheap
An excellent real estate agent, with his superb negotiation skills and rich industry contacts, can often promote the success of a house transaction price higher than the expected price rather than fail.
Therefore, it is worthwhile to choose a relatively expensive real estate agent.

List agents who have recently sold properties similar to yours, and then talk to them in person to see why they successfully sold the house.

Ashley Weston, head and supervisor of Ray White Frankston, said: "Having real estate agents explain how they will negotiate prices with buyers will give you a better understanding of what is the most important part of the sales process."

"Ask them how they will find buyers. Low interest rates and high demand drove the popularity of housing sales a few years ago, but now the market is slowing down, which means that the ability of the real estate agent determines whether your property is competitive."

How to promote your property is crucial.

Don't price too high
For those who decide to buy a house, price is not necessarily the first factor they consider, but it is definitely one of the necessary screening conditions.
Weston said that setting prices too high would scare away a large number of people who were originally interested in buying a house.

“Buyers will give priority to three to four properties that can be visited on Saturdays, but if they think the price you set is too high, they may not go to the house. The period when buyers are most interested in properties for sale is In the first three or four weeks after being put on the market, if the price is too high, sellers will miss this golden period." He said.

Of course, you can adjust the price later. But when a property stays in the housing market for a few weeks, regardless of the price, some buyers may consciously avoid it. Because the longer it is on sale, the more likely it is for buyers to think it is problematic.

Weston said: "If you mess up, there can be no other golden period. Once buyers give up a property, it is almost impossible for them to consider buying it again."

Don't save marketing costs
Buying and selling real estate has always been a high-consumption activity, but saving money is not a good way to solve all problems.
Effective marketing activities can make your property open to more audiences, which is one of the best ways to increase the popularity of your property. When more people are interested in your property, the more likely it is to sell for a good price. Therefore, Townsend believes that deliberately saving promotion costs is not worth the gain.

He said: "Although you can save A$500 or A$1,000 in marketing and promotion, this often has an extremely adverse effect on the final sale price of the property."

"It would be better to pay an extra $1,000 in marketing expenses than to lose tens of thousands of dollars in selling prices due to lack of effective promotion."

Although the Australian real estate market is currently in a downturn, selling properties in a constantly changing market is not necessarily a bad thing.

According to current data, housing prices in Australia are falling, which makes sellers inevitably begin to worry that these changes will have an impact on the market value of their properties.

Ashley Bierman, Deputy Director at Double Bay from the real estate company Ray White said: "Sydney property prices are roughly the same as in 2016, so for sellers who bought properties two or three years ago, selling properties now sell more than they did when they bought them. Slightly higher price." Bireman said that for people who sell houses during the downturn in the housing market, if they continue to buy houses under the same market conditions, the new houses they will buy are likely to experience price drops, so this is a good time to buy large-scale properties. The Sydney real estate market has experienced its lowest downturn, but sellers are still able to sell properties at considerable prices.

If you are considering selling a house, here are some tips In order to allow sellers to sell their houses for a good price in the ever-changing market environment, Bierman provides the following suggestions: First of all, you need the help of a capable, experienced real estate agent who specializes in the specific market in your area. Bierman said: "A good real estate agent will customize a strong sales plan for you, and is committed to achieving the plan. Regardless of the market environment, they will try to help you sell the best price." You can also consider making some small improvements to your house, which can increase its market value without spending too much, such as painting the walls or cleaning the exterior of the house. Bierman said: "The key is to show your house to buyers with the best possible effect. I believe simple improvements will definitely greatly increase the attractiveness of the house." Develop a marketing plan to improve the competitiveness of the property. "Sellers can launch marketing campaigns on print media, digital media, and social media to promote their properties while ensuring that your target audience is accurate."

You can target some buyers for private sales to increase their interest. In doing so, you can also gain insight into market prices. "This can leverage the leverage of supply and demand, capture the psychology of buyers and obtain some preliminary quotations, which will help sellers formulate the best pricing strategy and help real estate agents sell."

Be flexible in the process of selling houses. Bireman suggests: "Whether you need to adjust your marketing activities or change strategies, you must keep an open mind and respond flexibly."
"Furthermore, try to make decisions as quickly as possible for difficult things during the entire process of selling the house."

Understand the market
It is worth noting that for some sellers, despite the volatile market environment, house prices in certain areas of Sydney remain strong.
"High-quality real estate markets like the eastern Sydney area usually maintain a high market value and unique appeal. They are unlikely to be affected by the overall market trend-it can be said that this is a micro market in a macro environment- Therefore, sellers who sell high-end properties in high-quality urban areas can still sell at considerable prices.” Bireman said.

Sydney's continued downturn in the real estate market has caused changes in the types of properties that buyers are interested in. This is good news for sellers who sell properties in areas where buyer interest is relatively strong.


Nerida Consibee, chief economist of Realestate.com.au, said: "We have begun to observe that buyer search activity in high-quality urban areas is gradually increasing."
"Currently, the number of views of houses for sale in Sydney's northern beaches and inner east is the highest in Australia."

“Due to the fall in housing prices, buyers’ attention has returned to high-quality urban areas, either because they see good investment value or because the decline in housing prices is large enough to allow them to re-enter the housing market in high-quality urban areas.” Consibee added.