February 23, 2023
Off-market sales and purchases are a largely hidden, and unknown, factor in the real estate world.
Definite data is certainly hard to find on off-market property but does this necessarily mean off-market is a No Go Zone?
Come with us while we take a look.
Quite simply, we can't as there is no definite data on off-market property purchases and sales.
This is essentially due to the fact that off-market property is private, rather than public.
Such homes are not advertised on snazzy billboards, brochures, or websites - unless you've registered or similar with said website.
As such, even property data and analytics expert, CoreLogic, can't provide data on off-market property.
However, as we mentioned last year, Listing Loop's internal and market research has identified that off-market transactions make up 20% of Australia's total property market.
If that doesn't sound like much truck, consider this:
In the year ending August 2021, there were almost 598,000 house and unit sales across Australia, according to CoreLogic estimates.
Granted, this extraordinary number of annual sales - the highest since 2004 and a 42% lift on the previous annual sales figure - was due to COVID changes.
Pre-COVID, Australia was looking at around 435,000 property transactions per year, says CoreLogic.
Yet even at this pre-2020 figure, off-market transactions accounted for around 87,000 of our nation's pre-COVID total property market - and around 200,000 in our post-COVID world.
We think that number ain't too shabby.
It depends who you talk to!
As we've discussed recently, there are certainly pros and cons to off-market property for both buyers and sellers - and we certainly encourage you to investigate both sides of the story before plunging into the off-market fray.
For sellers, we're talking smoother, swifter sales, more privacy, and no upfront advertising costs.
For buyers, we're also talking smoother, swifter sales and at a nicer price than one obtained at auction or a private treaty, as well as less competition.
It can also literally pay to remember that we're in an "interesting" rather than a slowing, market right now.
Speaking from experience, we're finding it's far more a buyer's market than a seller's market right now.
So, less competition and the hidden secret ambiance of the off-market property are certainly appealing in a busy, expensive city.
Saying this, many real-time, real-life industry experts are not fans of off-market property, and if buyers in particular head in this direction, they'll need to be prepared for comments such as, "You'll lose money rather than make money".
Here's the bottom line though:
Whether you're a buyer or seller, in either a strong market or a slow one, you need to go with what works for you as more intangible factors than a fabulous sale may win the off-market decision for you.
Sellers, perhaps you're in the midst of an already stressful situation such as a divorce or a death.
As such, you simply want privacy -to say nothing of free weekends - without having to deal with crowds coming through your cleaned-up house for open inspections.
This privacy could well make up for the - possibly - lower off-market sale that your friends and family are warning you about.
And again, buyers stressed about the thought of an auction or the crazy competition and prices in their property world may really value the thought of less of both when purchasing.
We honestly encourage you to investigate both the on and off-market property world and let us know your concerns.
Rest assured, we're always happy to help with all the dramas and stressors of house buying and selling.
Indeed, 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.
Discover pre-market and off-market properties you didn’t know were for sale.