Media Release : Price Expectation Report August 2020
Seller Satisfaction Increases –
Aussie Property Market ‘Happiness’ Rises Despite Pandemic
- 33,000 Australians polled in RateMyAgent’s newest six-month Price Expectation Report
- Nationally, vendor sale price happiness is up 12% YoY
- Market satisfaction stabilises in June despite sharp 8% drop in April
- ACT happiest state/territory, but VIC has majority of the nation’s top 10 happiest places
- Metro areas remain ahead of regional areas in first half
- Plus, Australia’s happiest and unhappiest areas revealed
August 2020: National research by RateMyAgent – Australia’s number one reviews, ratings and rankings website for real estate agents – has today revealed that despite an economic downturn Aussie seller satisfaction continues to increase nationwide, an indication of a resilient property market.
With more than 33,000 respondents, RateMyAgent’s half-yearly Price Expectation Report (January – June 2020) asks successful vendors if the sale price achieved was above, below or in line with their expectations. Results showed an increase in satisfaction YoY with overall net happiness up 12% from June 2019 (27%) to June 2020 (39%).
The COVID-19 Impact:
When looking at the first half, vendor price satisfaction slumped 4% in March, which was followed by a sharp drop of 8% in April – with only 35% of Australian sellers reporting an above-expectation sale price during the month*. However, when compared to the same period YoY (April 2019) April 2020 still reported an 8% increase.
The COVID-19 Recovery:
From late-April, the market began to find its feet, with vendor happiness seeing a stabilisation throughout May (35%) and into June (36%). This stabilisation can be attributed to an unprecedented drop in property supply in April – suddenly, buyers were having to compete for a reduced number of properties on the market, which kept prices stable and naturally vendor sale price satisfaction improved slightly.
Improvements were led by strong satisfaction levels in the Australian Capital Territory, where net vendor happiness jumped from 44% in April to 57% in June. While Tasmania, New South Wales and Victoria saw the sharpest state-based drops in April (dropping 20%, 12% and 9% respectively). All states have since bounced back and continue to increase due to buyer competition and widespread supply shortages.
Mark Armstrong, Executive Director and Co-Founder of RateMyAgent said, “April was a particularly tough month for vendors. There wasn’t a single state in Australia that didn’t experience a decline in sale price happiness. This is reflective of the high levels of economic and consumer uncertainty around the business impact and government restrictions associated with managing the COVID-19 pandemic.
“As expected, what we’ve seen since May is the stabilisation of market confidence – after the initial shock in March and April wore off, consumer optimism is on the way back up as seen in our recent Price Expectation Report.
“The return of consumer confidence is largely attributed to the Australian Government’s stimulus packages. HomeBuilder, JobKeeper and JobSeeker have provided a safety net to Australians and added a level of security to what would be an otherwise quite volatile economic period.
“Looking back on the March to June period we saw the absolute peak of consumer uncertainty, which can be attributed to the decline in happiness. Looking to the next six months of 2020, Australian sellers and buyers can anticipate stable levels of vendor happiness if stock levels remain low. However, a potential increase in supply of property as we enter the spring market may dial-down buyer competition and thus see happiness decrease.”
The Happiest States/Territory:
The stabilisation in happiness is being seen nationwide, but perhaps most significantly across the Australian Capital Territory (47%) overtaking Tasmania (40%) this quarter^ as Australia’s happiest state/territory. Following this lead is South Australia (39%), Victoria (38%) and New South Wales (34%), and rounding out the bottom of the ladder is Queensland (34%) and Western Australia (26%).
“The ACT property market has proven incredibly stable. Buyers in the area aren’t putting off any plans to buy and vendors aren’t hesitating to get on the market. Job growth and stable Government employment has brought strong competition to the local market, meaning vendors are achieving great prices on their property sales,” adds Mark Armstrong.
The Happiest Regions:
Taking out the title of Australia’s happiest region the quarter ending June 2020 is Canberra – reaffirming strong vendor satisfaction in Australia’s capital city. This positive trend in seller satisfaction has seen Canberra (47%) leapfrog Southern Melbourne (36%), previously the happiest region in Australia in December 2020.
In the top 20 happiest places nationally, Victoria took out the most regions (eight), followed by New South Wales (seven) and Tasmania (two). Victoria also holds six of the top ten regions nationally.
The report went on to find net happiness levels over the past 12 months have improved across all states except Tasmania, which has reported satisfaction levels well above average for the past 12 consecutive months and naturally had no growth during the economic downturn.
Metro Versus Regional:
It also revealed happiness rose across both metro and regional areas, too, which shows the Australian property market remains on a slight upward trajectory despite the current economic downturn. Both areas rose in happiness overall, however Aussies in metro areas remain ahead of regional areas with 36% of vendors receiving a better sale price than expected (as compared to 34% in regional areas).
RateMyAgent provides reviews, ratings, rankings and digital marketing solutions 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 to help consumers connect with trusted and recommended agents. RateMyAgent also provides digital marketing solutions for Real Estate agents. With over 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
About the RateMyAgent Price Expectation Report
This RateMyAgent Price Expectation Report is comprised of research conducted by RateMyAgent from 33,705 participants who sold a property in Australia between January and June 2020. Respondents were asked one question – was the sale price achieved above, below or in line with your expectations.
Key Findings – RateMyAgent Price Expectation Report
January to June 2020
- Net vendor happiness in Australia was 35% for the quarter ending June 2020, a decrease of 8% from the quarter ending March 2020. See state-by-state breakdown below:
- TAS (40%) saw a 16% decrease in vendor happiness from Q1 2020
- QLD (34%) saw a 2% decrease in vendor happiness from Q1 2020
- VIC (38%) saw an 11% decrease in vendor happiness from Q1 2020
- ACT (47%) did not see any change in vendor happiness from Q1 2020
- NSW (34%) saw a 12% decrease in vendor happiness from Q1 2020
- SA (39%) did not see any change in vendor happiness from Q1 2020
- WA (26%) saw a 3% increase in vendor happiness from Q1 2020
Net Happiness MoM 2020
Net happiness is calculated by asking vendors if their sale price is above, in line with, or below expectations. Above expectation results equate with happy vendors, and below expectation results with unhappy vendors.
Australia’s Happiest Areas – April to June 2020
Australia’s Unhappiest Areas – April to June 2020