Despite the relaxation of pandemic restrictions (with the exception of Victoria last week), house values have continued their decline. CoreLogic reports that the national house index fell 0.7% in June, following a 0.4% decline in May. The decline is evident across the five largest capital cities, with both Melbourne and Perth showing a drop of 1.1%. Hobart, Darwin and Canberra, on the other hand, recorded a subtle increase in value over the month.
During the past two months, the cumulative decline in home values across capital cities amounted to 1.3%. A variety of factors have helped to protect home values from more significant declines, including persistently low advertised stock levels and significant government stimulus. Additionally, low interest rates and forbearance policies from lenders have helped to keep urgent sales off the market, providing further insulation to housing values.
Recent value falls represent an interrupted upswing across most regions, reflected in high annual growth rates. The twelve-month change in home values remains in positive double-digit territory across Sydney (13.3%) and Melbourne (10.2%).’ Tim Lawless, CoreLogic Head of Research explained.
On a brighter note, estimates of market activity continue to improve, despite the decline in home values. In June, CoreLogic’s home sales estimate was up by 29.5%.
Compared to last year, the industry is seeing greater activity from real estate agents, creating a surge of fresh listings. Auction markets are also showing signs of recovery. The combined clearance rate of capital cities has averaged 59.9% since mid-May.
The uncertainty created by the rise in COVID cases in Victoria, and now NSW also, will no doubt add to the unpredictability and volatility in the market in the coming months. For many real estate agencies, it is a time to focus on how they can minimise expenses without losing market share to competitors.
If your real estate agency would like to reduce operating costs to negate any losses that may be coming due to market volatility, we can help you. Universal Property Systems can offshore your real estate administrative roles and save your agency between $100,000 and $400,000 (depending on the size of your agency) per year.
Our global team members are trained and monitored by Australian real estate industry veterans with years of experience. Transitioning to offshoring will help your business gain a competitive edge without compromising the quality of your customer service or your brand’s integrity.
If you are a decision-maker in a real estate agency and you would like to explore how you can reduce your costs, give our Head of Growth, Michelle Light, a call on 0499 094 220.