Quarterly market update - Quarter 1 2022

Quarterly market update – Quarter 1 2022

I am very excited to share with you our first property market review for 2022!! We have some awesome stats to get through in this short video – I have also copied a summary below so that you can cut to the sections you may find more useful along with a detailed breakdown of this market update! Hope you find this useful, any questions feel free to call or message me!

0:00 – 0:33 – Intro and how is the property market?

0:33 – 1:30 – Quarter performance for Stone Real Estate and overview of sales in the marketplace

1:30 – 2:30 – A look at the 20-year average growth charts & will the market crash?

2:30 – 4:00 – Recent sales & record breakers

4:00 – 5:10 – INTEREST RATES 5:10 – ending – Pricing, presentation & marketing

Overall, properties are still selling well. The property frenzy that was mid to late last year has eased a little, the average time it takes to sell a property with our office as of quarter 1, 2022 is around 20-30 days VS mid last year at 7-14 days. That being said, we have seen some HUGE prices being achieved this quarter and some really impressive results across the board. Our office has sold 55 properties in the first quarter of 2022, this is 1 more than the same time last year. The fascinating part about this… is the difference in sales volume and average sale price.

2021:

  • 54 sales in 90 days
  • $24m in volume transacted
  • Avg sale price of around $440,000

2022:

  • 55 sales in 90 days
  • $37.9m in volume transacted
  • Avg sale price of around $680,000

A quick look at the past 20 years of real estate prices across Maitland & Cessnock City. You can see the graphs at 1:45 (in video) clearly showing that property prices have done nothing but rise over the past 20 years. Sure, the market may have corrected or dipped over short periods but in the long run – property prices have continued to rise. Will this same trend continue? I believe that past performance is not ALWAYS a good future indicator but the facts and stats are hard to bet against! 2 of our main highlight sales:

  • 32 Vernon St Cessnock – sold $820,000 (highest price achieved for a 3 bedroom home)
  • 203 Hanwood Rd Branxton – sold for a record price in the exclusive Hanwood Rd Estate.

We are so proud to currently hold multiple record sale prices across multiple suburbs! Cannot thank all of our amazing clients enough!

A quick look at interest rates. What is going to happen over the next 12-24 months? Interest rates are forecast to rise between 1 – 1.5% over the next 2 years. Which is around a 0.18% increase each quarter. Remember the banking royal commission in 2018? In a nutshell, the commission saw the intervention of the responsible lending limit. This limit governed the criteria individuals needed to meet in order to borrow money from a lending institute. This made the property market tighten due to the lack of loans being approved which equalled less buyers in the marketplace (buyers market). When COVID first hit Australia, the responsible lending limit was soon removed meaning money could flow more easily to households or borrowers. With low interest rates and easing lending criteria…. It is easy to see why we had a property boom (sellers market). WHAT HAPPENS IF RATES RISE?? The interest rate rise will be very slow and gradual as lending will begin to tighten also. This isn’t something to fear but certainly something to plan for over the next 5 to 10 years. Those who borrow to the hill with no plan to reduce debt will be caught out (as always).

Pricing & presentation when hitting the market. I talk about this one a lot – largely because it is one of if not THE MOST important things when you are selling. Making sure you stand out from the crowd when selling is ultimately what is going to help gain interest and demand for your property. And as we know, demand is what is needed in order to achieve great results – if you’d like to know more about how to improve the value of your home… for free…. Give me a call or message