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More buyers are opting to buy off-market properties as sales volumes trend upwards and listing volumes plummet, according to the leading professional body for buyer's agents.
The Real Estate Buyers Agents Association of Australia (REBAA) has found that more Australians have been choosing to buy off-market property, with data revealing a discrepancy between sales and listing volumes.
The latest Cotality data showed that while annual sales activity has increased nearly three per cent, total stock levels have been down nearly 15 per cent over the same period.
Nationwide, Darwin saw the biggest difference over the past year, with listings falling by 45 per cent while sales activity rose 60 per cent.
Similarly, all other capital cities have recorded listing reductions in the double digits, with Hobart down 33 per cent, compared to the same period last year.
Brisbane saw listing reductions of nearly 17.3 per cent, Melbourne’s total listings fell by 15.6 per cent, and Sydney’s listings fell by nearly 12 per cent over the past year.
Meanwhile, compared to the five-year average, the data showed that nationwide stock levels have been down nearly 20 per cent.
REBAA president Melinda Jennison said the data showed that more home buyers and property investors were seeking off-market properties to secure their next homes and investments.
“However, with property prices rising in most jurisdictions, off-market properties are not the easiest to access for the everyday property buyer,” she said.
With up to around 20 per cent of properties estimated to be sold off-market each year nationwide, Jennison said that there were different factors for buyers to consider.
She said that buyers who have only bought a few properties in their lifetimes will struggle to find off-market properties, as it can be incredibly difficult.
“This is because they simply don’t have the networks or the relationships with sales agents to be on their radars when these types of properties become available.”
Jennison added that it was important for buyers to know whether a property is truly off-market or when it is simply pre-market and being advertised to certain databases.
“If buyers receive an email from a sales agent with a ‘first look’ at a property that already has all the snazzy photos and styling, this property is not off market.”
“It is part of a marketing campaign for a property that will eventually be listed for sale publicly – unless someone pays a ridiculously high price for it that the agent and the vendor simply can’t ignore.”
Ultimately, Jennison said that there were many reasons vendors would consider a private sale, including the property being a deceased estate, or the vendor going through a divorce and not wanting the hassle of open homes.
“Purchasing off-market can be a sound strategy because it reduces competition with other buyers, especially when listings are thin on the ground like they are at the moment.
“That said, although they are considered the ‘Holy Grail’ of real estate, buyers must undertake the necessary due diligence to ensure they are not being sold a lemon wrapped up in a shiny off-market cloak that may also be overpriced,” Jennison concluded.
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