Sellers are no longer shocked to learn what their properties are now worth, indicating the property market is beginning to improve, the head of Ray White has claimed.
“Our analysis of our results seems to indicate that many of the anticipated and predicted price adjustments have now taken place,” said Brian White, joint chairman of Ray White Group, in his latest monthly ‘White Paper’ briefing.
Mr White said that while the spring market had been “muted”, vendors were now at least accepting the reality that their properties were worth less in the current market.
“It is now no longer a shock for many sellers to understand that the value of their properties today has declined by disappointing percentages,” he said.
“This is always the first requirement in any market reversal. Sales begin to happen when both sides to the transaction accept new market realities.
“One senses that declining values have run their course. No one can guarantee anything, but there are now stories of increases at least matching declines in prices achieved.”
Mr White pointed to increased mortgage volumes at the Ray White-owned Loan Market as further evidence of the underlying strength in the market.
He said the Ray White Group met its $2 billion revenue “baseline” target for the month of September, which was consistent with its sales results in July and August.
He dismissed claims by US economic forecaster Harry Dent that the Australian property market was wildly overvalued and set for a major downturn.
“Thank God for forecasters,” Mr White said. “There are just two types of forecasters - those who don’t know and those who don’t know they don’t know!”