Strong appraisals signal active winter market
Although winter is traditionally a quieter period for property sales, current activity levels suggest the market will remain robust throughout the coming season, according to a major real estate agency.
Data from Raine&Horne shows appraisal figures are up by 21 per cent in April as compared to February 2014.
Raine&Horne chairman and CEO Angus Raine said these results were a positive indicator for the winter sales market.
“Appraisals are usually a yardstick of real estate sales strength two to three months down the track,” he said.
“The upshot of current appraisal levels is that we are anticipating very strong settlement results in May and June, although there is still a shortage of listings, which indicates that some owners are wary that a winter sale will not deliver an optimum price,” he said.
Sydney saw the largest rise in appraisals, with a 26 per cent jump over the two months, while Victoria rose by 22 per cent and Queensland by 15 per cent.
As a general rule, Mr Raine said listing numbers tended to drop off in winter, meaning vendors have less competition in the market.
“Winter is often overlooked as a good time to sell in many markets around Australia, and despite our strong appraisal numbers, you could be competing with 15 to 20 per cent fewer homes for sale than in traditionally high volume periods such as early autumn or spring,” he said.
“It's also a fallacy that committed buyers are put off by winter chills, while outdoor factors will have little impact on smaller homes and apartments, for instance.”