Monday, 12 September 2011

Report from Xmax 2010 will it repeat this 2011 Xmas?

Market Activity Increasing rapidly post Christmas / New Year

The New Year is certainly starting with bang.  Anecdotally we are hearing that many real estate agents have cut their holidays short due to unexpectedly high prospective vendor enquiries.  Also, pre-listings activity from real estate professionals is already higher than at any time over the last two years suggesting that the amount of stock about to come on the market is going to start ramping up over the coming month.
Activity on the rpdata.com Professional’s platform, which is subscribed to by around 80% of all real estate agencies around the country, has spiked over the last two weeks of January.  The number of Comparative Market Analysis (CMA) reports, which are mostly used as part of an agencies listing process, has been just below 20,000/week over the last two weeks.
CMA reports
There is a strong correlation between CMA volumes and the number of new residential property listings hitting the market.  In general terms a CMA report will translate into a new property being advertised for sale within 30 days.
In comparison to the fourth week of 2009, 2010 has recorded a level of activity which is 33.3 per cent higher indicating the very strong market conditions currently.  Over the last week RP Data’s Market Activity Index has jumped by a very impressive 29.6 percent, this is coming of the back of an increase in activity of 15.8 per cent during the previous week.  The increase in the Index during the most recent week is the second greatest jump in its history which dates back to the beginning of 2008.
Based on the most recent week’s results detailed below is the performance of each individual state:
  • New South Wales – activity is 34.4 per cent greater than it was at the same time last year and 31.7 percent greater during the week.
  • Victoria – activity is 21.8 per cent higher than it was at the same time last year and over the last week activity has jumped 31.5 per cent.
  • Queensland – the Index has recorded an increase of 29.1 per cent during the last week and is 23.6 per cent greater than at the same time last year.
  • South Australia – over the last seven days activity has increased 27.1 per cent whilst activity is 23.3 per cent greater at the same time last year.
  • Western Australia – compared to last year current activity is 66.4 per cent higher and the last week has seen activity lift by 24.9 per cent. 
  • Tasmania – RP Data was not collecting this information for Tasmania at the same time last year however, activity is very strong and has climbed by 26.2 per cent during the week.
  • Northern Territory – the current level of activity is an amazing 440.4 per cent higher than at the same time last year with activity increasing 43.5 per cent during the last week.
  • Australian Capital Territory – current activity is 134.3 points greater than last year and 54.7 per cent greater than last week’s result.
It certainly looks as if the beginning of 2010 will see a great deal of residential property market activity thanks to the current strong level of pre-listing activity.
Please let us know if you are undertaking a lot of pre-listing activity and what your expectations are for your area during the first quarter of 2010.