Is it perfect time to invest regionally?
Vendors in the capital cities are starting to feel the pinch, with sellers receiving less than they anticipated as COVID-19 takes a toll on capital prices, latest research has shown.
The latest RateMyAgent survey asked if vendors received above, below or in line with their expectations – with sellers in the city being less happy than regional areas.
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Mark Armstrong, CEO of RateMyAgent, said: “The Price Expectation Report shows us that the initial impact of COVID-19 on the market wasn’t as severe as expected, as the housing market has proven to remain resilient.
“While we still need to analyse the long-term effect of the pandemic and keep a close eye on economic conditions, we are seeing the industry begin to recover, particularly with the easing of restrictions and a slight drop in the national house price,” Mr Armstrong added.
In response to uncertainty, metro areas saw the largest drop in vendor happiness. Robust property markets in Melbourne and Sydney saw declines of 10 per cent to 16 per cent, respectively. While regional areas in Victoria and Queensland saw a reduction in vendor happiness between 4 and 1 per cent.
Contrary to this, property markets in Queensland (4 per cent), South Australia (1 per cent) and Western Australia (1 per cent) have initially seen a steady increase in price satisfaction in April, with the remainder of Q2’s results to determine the full impact on the real estate market.
The decrease in unhappiness was seen across all price segments, but most dramatically across the premium end of the market, which consists of home sellers with property valued at more than $1.5 million. In April, these vendors saw a 21 per cent decrease in price satisfaction, reducing the total of happy sellers from 46 per cent to 25 per cent.
The April results reveal the ACT as the happiest state (45 per cent), with joint second place going to Victoria and South Australia (40 per cent), followed by Tasmania (39 per cent), and NSW and Queensland (37 per cent), and trailing last, Western Australia (27 per cent).
