November 21, 2022
Not surprisingly, we at Listing Loop are big fans of off-market property.
But is it smarter to head the way of off-market sales in a slowing market?
And are we even in a slowing market at the moment?
Let's take a look.
No, we're not.
We know the many "industry experts" trying to make us believe property prices are "plunging" would have us think the market is slowing, or cooling.
But this is simply not the case.
Certainly, Australian real estate has experienced price declines this year, particularly in Melbourne and Sydney.
Regional areas are also just beginning to experience some falls.
But Adelaide, Perth and Brisbane are going beyond extraordinary when it comes to price growth.
So let's take a look beyond the headlines at how our cities' property markets are faring (and we encourage you to do this too).
CoreLogic figures show Sydney and Melbourne property prices dropped 8.6% and 5.6% respectively in the year to October 31.
Not pretty, we know.
But these figures are a mere drop in the ocean compared to these cities' extraordinary upswing during COVID - we're talking 27.7% for Sydney from its pandemic trough to its peak and 17.7% for Melbourne.
And if these figures don't make your eyes water, try these trough-to-peak ones on for size:
And all these cities were experiencing almost equally astonishing price growth before our friend COVID joined us in early 2020.
Regional areas throughout Victoria, Queensland, South Australia, Western Australia, and Tasmania also experienced dramatic price growth in the year to October - 20.4% in the case of South Australia.
As we've noted, prices are now dropping in all these cities but in Adelaide, Perth and Darwin, such falls are still less than 1% - and that's just for October alone.
All three cities, and Brisbane too, can still boast very impressive annual growth: 16.5% in Adelaide; 8.4% in Brisbane; 4.9% in Darwin; and 4% in Perth.
It's little wonder then that the truly smart and savvy property pros are sticking with their argument that the 2022 market is simply adjusting - not crashing - to the jaw-dropping growth of the past few years.
As one of our favourite people, Michael Yardney of Metropole, said just this month:
"It's an orderly correction that had to occur after house prices all around Australia got ahead of themselves."
There's no CoreLogic or similar official data on off-market sales, but through internal and market research, we have identified that off-market transactions make up 20% of the total property market.
Or, in other words, 20% of property sales in Australia are sold off-market.
Apart from these figures, I can only go with what I've experienced myself this year, as a buyer in the Brisbane market.
My city's property market is busy and expensive.
An off-market purchase however ensures less competition from other buyers with fewer crowds at open home inspections and fewer people even knowing about such sales in the first place.
Off-market purchases also give me the chance to negotiate directly with a vendor, or seller, for a nicer price than I'd see on market.
Vendors can also definitely benefit from an off-market sale, even in the hot market we're still experiencing in cities like Brisbane, Adelaide, and Perth.
Think: no large crowds coming through your home at open house inspections, fewer advertising fees, and potentially, a swifter sale.
We're always happy to help with all the dramas and stressors of house buying and selling.
And if you're particularly tired of house-hunting, we've even partnered with buyer advocates who can check out homes for you and organise sales assessments and negotiations.
Our off-market and pre-market marketplace gives you VIP access to properties so you can get in first.
Just sign up at Listing Loop or download our app.
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