Competition pushes homes $50k above first offers
Nationwide, final bids are up almost $50k on the first offers being made, thanks to a boom in qualified buyers and strong competition between bidders.
In exclusive preliminary research findings from Market Buy, the online offer management provider has been able to provide a snapshot of property transactions Australia-wide — and proven just how strong the 2021 market is.
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Market Buy’s chief digital strategist, John Hellaby, said “the market is absolutely seeing a surge in activity from qualified buyers”.
“With less property on the market, this is driving the demand and increasing the offer activity, resulting in property prices continuing in an upward direction.”
Commenting on the findings, Mr Hellaby said that, in most cases, multiple qualified buyers are competing for properties in an “aggressive fashion”.
“This aggression is playing out in both the number and value of offers being made by qualified buyers.”
So far in 2021, the national average monetary figure between the first offer placed on a property and the final sale price is $48,556.
Qualified buyers, as well as the number of offers placed per property, are also multiplying — with qualified buyer numbers increasing by nearly 120 per cent, while there’s 21.39 offers being made, on average, for each property that is for sale.
Given the lack of property stock available for agents to list, Mr Hellaby said many of these properties are being negotiated and selling prior to landing on any portal or social media website, making the qualified buyer and offer statistics all the more incredible.
Overall, the statistics are most impressive in Queensland, which has seen a 334 per cent increase in offers alongside a 194 per cent increase in qualified buyers entering the transaction process.
It’s led to properties, on average, being sold for $54,767.86 more than the first offer placed.
Western Australia is also seeing more competition between potential buyers, reporting a 180 per cent increase in offers and a 152 per cent increase in qualified buyers.
The competition is leading vendors to pocket $48,645 more than they would have if they’d accepted the first offer on their property.
After a rocky 2020 that spent more time in lockdown than any other state, Victoria’s property market is also heating up. Market Buy has reported a 163 per cent increase in offers within the state, and a corresponding 60 per cent increase in qualified buyers.
So far in 2021, Victoria’s vendors are pocketing a $43,644 increase in their property’s sale price between the first offer made and the final offer they accept.
Interestingly, New South Wales was the only state reported in the preliminary data which featured a drop in offer numbers, which are down by 5.16 per cent.
Despite this, qualified buyers are actually up — with a 66.02 per cent increase in qualified buyers. A testament to the strength of that particular marketplace right now is the fact that the state has still managed a $26,642 increase in selling price from the initial offer made.
While the numbers paint a positive picture for Australia’s real estate agents, Mr Hellaby has conceded “how long this trend continues is anybody’s guess”.
“But for now, agents cannot list enough property to meet buyer demand, and as that continues, so does the increase in multiple offer situations.”
