C21 Market Pulse | November 2023 | Australia

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P U L S E

N o v e m b e r

M A R K E T

C21

PUBLISHER Century 21 Australia Pty Ltd

CONTRIBUTORS Chris Gray Tim Lawless REI Super Ben Palmerone

EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600

ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600

WELCOME TO THE

November 2023 ISSUE OF

C21 MARKET PULSE

DISCLAIMER We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 Australia Pty Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability.

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Cover image: R Architecture on Unsplash

C O N T E N T S N o v em b er

PROPERTY MARKET UPDATE

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BUYING YOUR FIRST HOME

CoreLogic Home Value Index up 0.9% through

10 Things to remember when purchasing your

October but some downside risks emerging.

first home

CoreLogic Head of Research, Tim Lawless

BUYING PROPERTY

ASK A C21 AGENT 05

How can I maximise the appeal of my property to

It’s not too late to buy

potential buyers?

Your Empire CEO, Chris Gray

Century 21 Southwest Fairfield, Ben Palmerone

SUPERANNUATION

08

Navigating your financial journey.

REI Super

C21 MARKET PULSE

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FIND OUT YOUR PROPERTY’S WORTH IN AN INSTANT Access an instant property report now.

Click here to begin.

C21.com.au/property-report/

P R O P E R T Y M A R K E T U P DAT E

CORELOGIC HOME VALUE INDEX UP 0.9% THROUGH OCTOBER BUT SOME DOWNSIDE RISKS EMERGING CoreLogic’s national Home Value Index rose a further 0.9% in October, accelerating from a 0.7% rise in September (revised down from 0.8%).

Since finding a trough in January, the national HVI has increased 7.6%, leaving the index only half a percent below the historic high recorded in April last year.

CoreLogic’s research director, Tim Lawless, noted a nominal recovery in the national index is likely to be just around the corner. “At this rate of growth, we will see the national HVI

BY T I M L AW L E S S , H E A D O F R E S E A R C H , CO R E LO G I C

“The slower rate of appreciation

-2.2% below their January 2022

can probably be attributed to a

peak and Melbourne values -3.7%

combination of higher advertised

below the March 2022 peak. Hobart

stock levels alongside stretched

values are down the most from their

affordability,” Mr Lawless said.

recent high, remaining -11.6% below

“With an acceleration in the flow

peak levels.

of new listings coming onto the market, it’s unlikely buyer demand will be able to keep pace as we move through spring amid high interest rates and low sentiment.”

Regional markets continue to lag their capital city counterparts. At a broad level, the combined regional index was up 0.7% in October compared with a 0.9% rise across

Dwelling values rose across each

the combined capitals, and this trend

of the capital cities except Darwin

of higher growth in the capitals was

(-0.1%) through the month, with

evident across every state.

Perth (1.6%), Brisbane (1.4%) and

“Despite the slower pace of growth,

Adelaide (1.3%) continuing to outperform the other capitals.

reach a new record high mid-way

Three capitals have seen dwelling

through November, recovering from

values rise by more than 10% over

the -7.5% drop in values recorded

the first 10 months of the year, led

over the recent downturn between

by Sydney (10.9%), Perth (10.8%)

May 2022 and January 2023.”

and Brisbane (10.2%).

Although housing values are

Brisbane housing values posted

consistently rising across most capital

a nominal recovery in October,

cities, there’s been a clear slowdown

erasing the previous -8.9% drop in

in the quarterly pace of growth trend.

values to reach a new record high.

The three months ending June 2023

Perth and Adelaide are also at new

saw capital city home values rise by

record highs after recovering from

3.7%. Since then the growth trend has

shallow downturns earlier this year.

drifted back to 2.6% over the three

The remaining capital cities have

months to October.

some way to go, with Sydney values C21 MARKET PULSE

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every rest of state region recorded a rise in home values over the month, except Regional Tasmania where values were flat,” Mr Lawless said.

“Similar to the trend in the capitals, Regional Queensland, WA and SA are showing stronger conditions with each of these rest of state regions at record highs in October.”

Of the 307 SA3 regions analysed nationally, 41 (13.4%) recorded a drop in value over the past three months, with most located in Regional Victoria (11 SA3’s) and Regional NSW (6 SA3’s).

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BUYING PROPERTY

IT’S NOT TOO LATE TO BUY

B Y C H R I S G R A Y, C E O, YO U R E M P I R E

The silly season is almost upon us and the shops are full of festive decorations. There’s only a handful of weeks left before Christmas and so many buyers have given up on their thoughts of buying a home or investment property in 2023. But all is not lost, there is still time and it could be the best time to be buying, not the worst.

Most property advertising and

few more days to negotiate a deal

everything will have sold. Many

marketing campaigns run for 4-5

before the market closes.

buyers will have already disappeared

weeks so if the property hasn’t been listed on a portal yet, it’s true, there isn’t much chance of many being listed between now and the new year.

A typical property settlement is 42 days from the exchange of contract so if you’re planning on moving in this year, I wouldn’t be setting your hopes too high as it’s probably not going to be happening.

However, if you are still wanting to find a property, then I would keep your energy up as this is often the best time to be looking as many of the other buyers will already have

on holidays and that creates an

GO TO EVERY AUCTION Owners with properties that don’t sell at auction will be under massive pressure to negotiate a deal either that day or in the days following.

Being the highest bidder will give you the first chance to negotiate

opportunity for those who are still around. Check-in with your solicitor or conveyancer to make sure they will still be around and happy to take a last-minute call. The very last trading day will be Friday 22nd Dec.

the agent knows that you’re still

TRY AND PICK UP A 2024 LISTING IN 2023

interested and willing to make a

Agents are still taking listings now

further offer.

and are advising their clients to

and even if you’re not, make sure

AGENTS WANT TO GO ON HOLIDAYS Real estate agents work hard and they look forward to a good 6 weeks

wait till early next year to start the advertising and marketing campaign to give it the best chance of selling.

However, they still maybe open for

given up, leaving a door open for you.

off if they can from mid-December

CONCENTRATE ON THE CURRENT LISTINGS

to sell off their final listings of the

Whilst auction clearance rates are

more time with their families. If the

reasonable, there’s no guarantee

property you want to buy is the last

of a property selling. If owners do

listing they need to sell, work on their

need to sell, they’ll be hesitant about

emotions as you put in your offer.

The earliest deal I’ve ever done was

DEALS STILL HAPPEN UP TO CHRISTMAS EVE

all agents go on holiday and not all

Whilst most deals will be done

buyers are back from holiday.

leaving it to the last minute and more likely to take a pre-auction offer as they know that if the auction campaign fails, they’ll only have a

to Australia Day so they’re very keen year as that means they can have

and dusted by mid-December, not

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offers and get some extra revenue this year. As you go around the open homes, ask them what’s coming up and who might be open to an early guaranteed deal.

NOT ALL AGENTS GO ON HOLIDAY in the first week of January as not vendors wait to make sure all the

Continued over page

Image: R Architecture on Unsplash

Continued from previous Some like to get an early start to the

another 3 – 4 months until the market is back in full force.

New Year as whilst there may not be

If a vendor doesn’t sell in Nov/Dec

lots of buyers, there are also not many

2023, chances are, they’ll often be

competing properties so the odds of

waiting till after Australia Day to

success might be higher.

re‑list the property (end Jan) to get

CONSIDER USING A PROFESSIONAL TO HELP YOU Buyers agents often have very good working relationships with sales agents and have often done many deals together over the last decade or two. They are used to getting off-market deals that often aren’t

the most exposure. Then they will

ABOUT THE CONTRIBUTOR Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes

have another 4-5-week campaign

and investments for time-poor

(end Feb) and then 42 days to settle

professionals – searching,

so they won’t be seeing any cash until mid-April. This makes it a massive incentive to do a deal in the

negotiating, renovating and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky

next few weeks so make sure you

News Business channel, where he’s

don’t miss out.

interviewed various heads of property research companies and major industry figures. Chris is a qualified

advertised to the public. This could

accountant, buyers’ agent and

make it the perfect time to avail

mortgage broker.

of their services and could make

For more information, visit

the difference between securing

yourempire.com.au and follow Chris

a property now versus waiting

on Facebook: @ChrisGraySydney C21 MARKET PULSE

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S U P E R A N N U AT I O N

NAVIGATING YOUR FINANCIAL JOURNEY

BY REI SUPER

Nick Phillips, Senior Financial Planner at REI Super discusses the most common questions he hears and the typical problems he solves. When should I get super advice, as opposed to full financial advice? How should I be invested, what returns could I expect, and how should I prepare for retirement?

POINTING THE COMPASS

now and into the future and then

your tolerance for risk as part of

‘Most people come to me simply

explore the ways they can go about

your investment strategy to grow

not knowing where to start, needing

reaching those goals.’

your funds, insurance needs to

help to point the compass to begin.

They may have jumped online and searched a few websites, read a financial self-help book, researched fund returns etc., but they just haven’t worked out how to apply that knowledge to their own situation. That’s where I come in, and it’s my job to help members work through what’s important to them. What they want to achieve

‘Fortunately for most of us, our financial situations in earlier years are not overly complex, so the things we need to know about are straightforward until you get to retirement. Which is great because most superannuation advice provided by REI Super is at no additional cost. That advice covers off the important things you need to understand such as

protect you financially if something unforeseen happens, tax saving options when making additional contributions and, importantly nominating beneficiaries in the event of passing away.’

ADVICE IS A JOURNEY One of the most important things Nick impressed upon me was that financial advice is a journey that continues throughout your life. It’s not just set and forget.

‘As life goes on, circumstances change, needs change and goals and aspirations shift. What’s right for you when you’re single can change if you have a partner, when you buy a house, if children come along, when careers shift, if you downsize or come into an inheritance. There are so many changes that can shift the needle and alter your situation.’

‘For that reason, before giving me a call, I encourage everyone to use the REI Super website as their ‘go to’ when

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in light of their goals, objectives

circumstances change. It has a wealth

With so many things to take into

of information, with easy-to-use

consideration, it can be quite complex

and current situation. Members

online tools and resources to explore.’

working through the options that are

should obtain and read REI Super's

available to achieve your ultimate

Product Disclosure Statement

GET ADVICE EARLY ‘Retirement isn’t a word we refer to all that much these days, with so many of us continuing to work into our latter years in the business we love.’ The next chapter is how we view it now, and that is the time in life when you are looking to achieve the lifestyle you want and a regular income when you are no longer working full time.’

60 years of age is the magic number

outcome – getting advice well ahead

and Target Market Determination

of this time is invaluable.’

before making any decisions. REI Superannuation Fund Pty Ltd ABN

The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular

that opens up a wealth of opportunity

needs. Individuals need to consider

for your super and super pensions.

whether the advice is appropriate

C21 MARKET PULSE

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REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 Superannuation Product Identification No. (SPIN) REI0001AU for the general information of members of REI Super. It does not take into account any member’s individual financial objectives, financial situation or needs. Members should obtain and read REI Super’s Product Disclosure Statement and Target Market Determination before making any decisions and consider talking to a financial adviser before making an investment decision. Past performance is no indication of future performance. April 2023. REIS 8458

BUYING YOUR FIRST HOME Image: R Architecture on Unsplash

10 THINGS TO REMEMBER WHEN PURCHASING YOUR FIRST HOME Buying your first home is an exciting milestone, but there are certain realities about the process that often go unmentioned. Here are 10 facts about purchasing your first property that people don't tell you.

1. STAMP DUTY CAN STING

4. INSPECTIONS ARE ESSENTIAL

other loans can negatively affect

While you're busy crunching

Don't overlook the necessity of

the amount of your pre-approved

numbers for your deposit, don't

comprehensive building and pest

mortgage or even mean that you

forget about stamp duty. This

inspections. These are not just

don’t get pre-approval. Wait until

tax can be a substantial expense,

formalities, but a crucial step in the

after you’ve purchased your new

varying depending on the

process. They can reveal potential

home to apply for more credit.

property's value and location. Factor

issues that might not be apparent

it into your budget to avoid any

during a casual walkthrough and

financial surprises.

will help you to avoid unexpected

7. THE EMOTIONAL ROLLERCOASTER OF THE PROCESS

repairs down the road.

The home-buying process is

5. ONGOING COSTS

excitement of finding your dream

Most people are aware of the First

Beyond the mortgage, there are

home to the stress of negotiations

Home Owner Grant, but its value

ongoing expenses associated with

and the anxiety of waiting for

and eligibility criteria differ between

homeownership. Property taxes,

loan approval, be prepared for a

states and territories. Research the

insurance, utilities and maintenance

rollercoaster of emotions. Patience

specific conditions in your area to

costs can accumulate. Factor these

and resilience are key.

maximise the benefits available

into your budget to ensure you can

to you.

comfortably manage the financial

2. THE FIRST HOME OWNER GRANT VARIES

3. AUCTION DYNAMICS REQUIRE STRATEGY

an emotional journey. From the

responsibilities of owning a home.

8. CONSIDER THE FUTURE GROWTH OF SUBURBS The property market is dynamic,

6. DON’T APPLY FOR OTHER CREDIT WHILE APPLYING FOR A MORTGAGE

and suburb growth can vary vastly.

Auctions are a common method of selling property, and navigating

Buying a new home means a lot of

and potential for capital growth of

the dynamics can be challenging

big and small costs, so it may seem

the suburb you are buying in.

for first-time buyers. Understand

like applying for another credit card

the auction process, set a budget,

would be a good idea. You should

and be prepared to act decisively to

avoid doing this unless absolutely

secure your dream home.

necessary. Extra credit cards and C21 MARKET PULSE

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Consider the future development

This foresight can be beneficial in the long run.

Continued over page

Continued from previous

9. NEIGHBOURHOOD DYNAMICS MATTER The neighbourhood you choose is just as important as the property itself. Research the community's safety, schools, amenities, and overall atmosphere. Take the time to explore the neighbourhood during different times of the day to get a feel for its dynamics.

10. NEGOTIATION ISN'T JUST ABOUT THE PRICE While negotiating the price is a significant aspect of the homebuying process, don't overlook other negotiable factors. Closing dates, repairs, and even furniture or appliances can be subject to negotiation. Be clear about your priorities and be ready to compromise.

While the process of buying your first home can feel overwhelming, being armed with these lesserknown facts and speaking to a good real estate agent can better prepare you for the journey ahead.

Approach the experience with enthusiasm and a practical mindset, and you'll build a foundation for a successful and fulfilling homeownership journey.

Click here to find your local

Image: R Architecture on Unsplash

Century 21 agent today.

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ASK A C21 AGENT

HOW CAN I MAXIMISE THE APPEAL OF MY PROPERTY TO POTENTIAL BUYERS?

BY B E N PA L M E R O N E , CENTURY 21, SOUTHWEST FAIRFIELD

As experienced agents, we

the colour palette of your home is by

Before your open home, pay attention

are frequently asked this

changing the bed covers.

to the ambiance of your property.

question. Here are some tips to help your property attract more potential buyers.

Firstly, consider your home’s colour palette. Neutral colours are universally appealing and allow potential buyers to envision how they can personalise the space. One cost-effective way you can update

Think about your exteriors – first impressions count! Ensuring that your gardens are well-manicured will enhance the street appeal of your property. I also recommend pressure

You could have a fresh scented candle burning and soft background music playing. This will help potential buyers feel at ease and enable them to imagine living in the space.

washing any hard surfaces as clean

By implementing these tips, you can

exteriors appear easier to maintain.

greatly enhance the overall appeal of

All this should be completed prior to

your home to potential buyers.

photographing your property.

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Reach more home buyers.

With Australia’s largest home buying audience, realestate.com.au can put your listing in front of more home buyers than anywhere else.

Talk to your local Century 21 agent to list your home for sale on realestate.com.au.

Source: Nielsen Consumer and Media View, 2023 Survey 03 National Online database Time period May 22 – Apr 23, Fused Nielsen Digital Content Planning (Text): March 2023, Realestate.com.au vs nearest competitor. Australian Population 14+. “Buyers” are Total Buyers who are likely or very likely to buy a residential property within 12 months.