- Prices are stabilising across most states amid market uncertainty
- Properties are frequently selling within 10% of the expected price
- Enhanced transparency in sales can boost buyer confidence and prices
After a period of market uncertainty on the back of rising interest rates, prices are now starting to stabilise in most states, according to new data.
Research from online property sales platform Openn has found that approximately 78% of the residential properties in the analysis sold within 10% of the modelled price estimate during April – marking a significant increase from earlier in the year.
Across each state, the proportion of properties that sold for 10% or more above expectation significantly surpassed those sold below expectations, signalling a turning point in market conditions according to Openn.
To establish the expected selling price, a computer-generated estimate was created using an algorithm that mimics a valuer’s methods. This estimate was then compared to the agent-advised sale price.
Prices beating expectations
Notably, in New South Wales, 20% of properties sold for 10% or more above the modelled price expectations, with only 8% selling at 10% or more below expectations. 72% of properties in New South Wales sold within expected levels.
Across Victoria, 15% of properties sold 10% above expectation compared to 9% that sold 10% below. 82% sold within expectation according to the data.
In Queensland, 81% of properties sold within expectation, while 12% sold by 10% or more above exception and 7% sold 10% below.
For South Australia, 77% of properties sold within expected levels, while 15% sold for 10% more and 8% sold for 10% less.
In Western Australia, 83% of properties sold within the modelled estimated range, while while 12% sold by 10% or more above expectation and 5% sold 10% below.
Almost nine in ten (86%) properties sold within expected levels in Tasmania, with 9% selling by 10% or more above expectation and 5% selling 10% below.
Finally in the ACT, 76% of properties sold within expected levels, while 15% sold for 10% more and 9% sold for 10% less.
The price stabilisation has also been seen with values continuing to bounce back, according to CoreLogic. Across the combined capital cities, home prices are up 1% over the past month, led by Sydney where prices rose 1.5%.
Values in Brisbane also rose 0.9% and 1% in Perth. While prices increased 0.4% in Adelaide and Melbourne. Over the past 12 months, values are now 1% higher.
Signs of stabilisation
Openn’s Managing Director, Peter Gibbons, said prices are now starting to come out above expectations in most locations suggesting the market has turned.
“Most states are now experiencing stabilised market conditions, which presents new opportunities for sellers to obtain optimal prices for their properties.”
Peter Gibbons, Openn, Managing Director
Gibbons said that with higher interest rates buyers are forced to be more cautious, however, clarity around the sales process can help.
He said agents can then take advantage of transparency settings to reveal the prices of competing offers to other participating buyers.
“In a rate-increasing environment, buyers are understandably approaching purchasing decisions with great caution and deliberation.”
“By offering more transparency in the sale process, agents can provide buyers with social proof and comfort in the demand for the property.
“This gives buyers the confidence to present their highest offers while helping sellers extract the best possible price from the market.”
He said that Openn’s platform is particularly effective in this regard, as it enables buyers to submit offers digitally and in real-time, offering a live snapshot of the property’s market valuation.
