National research by RateMyAgent – Australia’s number one reviews, ratings and rankings website for real estate agents – has today revealed Australian sellers are beginning to feel unhappy with housing prices, as vendor price satisfaction decreases by 5%, which may be in response to COVID-19.
With more than 20,000 respondents, RateMyAgent’s newest Price Expectation Report (January – April 2020) asks successful vendors if the sale price achieved was above, below or in line with their expectations.
The first quarter of 2020 showed a substantial increase in overall price satisfaction and a recovery trend, with net vendor happiness increasing 17%, from 25% in March 2019 to 42% in March 2020.
The rise in satisfaction can be attributed to strong house prices, as the property market recovers across New South Wales and Victoria – both states saw satisfaction rates double between March 2019 and March 2020, showing positive sentiment in the market.
This satisfaction in the market can be seen significantly across Tasmania, with the state (55%) overtaking Victoria (48%) this quarter as Australia’s happiest state.
In contrast, as government-mandated regulations and physical distancing measures came into place in response to COVID-19, April vendor price satisfaction dipped nationally. Tasmania led the drop with a 16% decline in seller happiness and was followed closely by Victoria and New South Wales.
Mark Armstrong, Chief Executive Officer and Co-Founder 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.
“What’s great to witness is how high-performing agents have adapted and learnt new ways to remain ‘undisruptable’ while continuing to provide exceptional customer experiences in an ever-changing property market.
We will be closely monitoring vendor price satisfaction in the coming months, to see if industry predictions regarding June as the new March or even Spring (with more stock coming into the market) will come to fruition.”
In response to uncertainty, metro areas saw the largest drop in vendor happiness. Robust property markets in Melbourne and Sydney saw declines of 10% to 16% respectively. While regional areas in Victoria and Queensland saw a reduction in vendor happiness between four and one per cent.
Contrary to this, property markets in Queensland (4%), South Australia (1%) and Western Australia (1%) 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% decrease in price satisfaction, reducing the total of happy sellers from 46% to 25%.
The April results reveal the ACT as the happiest state/territory (45%), with joint second place going to Victoria and South Australia (40%), followed by Tasmania (39%) and New South Wales and Queensland (37%) and trailing last, Western Australia (27%).
RateMyAgent provides reviews, ratings and rankings for real estate agents in Australia and New Zealand. The website’s 800,000 verified reviews are attached to the property listing to which they relate, ensuring that the information provided is unique to the agent and from a genuine property seller or buyer.
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RateMyAgent is Australia’s number one – and most trusted – real estate agent reviews and ratings website. With more than 800,000 reviews, RateMyAgent is used by agents who sell 80% of property across Australia and counts reviews for one-in-three properties sold nationwide – and reviews can be left by anyone who has sold a property in Australia in the past 12 months.
January to March (pre-COVID-19)
Comparison of Q1 to April 2020 (commencement of COVID-19 restrictions)