Lack of housing stock in regional areas is causing properties to sell in a matter of days, with listings 80 per cent lower than average.
The Announcement:
Robust residential markets present regional and city property owners with a perfect opportunity to sell a property with any encumbrances or to realign their real estate portfolios, according to Angus Raine, Executive Chairman, Raine & Horne.
“Every property has features that will appeal to buyers. However, some houses and apartments in regional Australia and even our capital cities may tick fewer boxes based on size, style and location,” explained Mr Raine.
“It might be that an apartment has no parking or balcony, it’s a tiny bedsit, or it’s a house located on a main road or across from a railway line.
“In softer markets, properties, whether they’re in regional population hubs such as Wollongong, Bathurst, or Tamworth with some flies on them may take longer to sell, but for now, they are selling weeks faster. A bull market smooths out the detractors and gets properties moving.
“However, this situation won’t last forever, and with talk that the banking regulator might pull the reins further with more borrowing limits, it’s time for regional owners considering a sale to make a move.”
Properties on the Central Tablelands selling off the charts
Michelle Mackay, Co-Principal of Raine & Horne Bathurst, says that properties with some limitations are probably selling twice as fast currently as they would in a softer market on the Central Tablelands.
“Properties that took three months to sell last year are snapped up in the current market in days,” says Ms Mackay.
“I’ve sold properties on main roads or back onto the railway line or apartments with no balconies or parking that would have been very hard to sell in softer markets.
“Even properties that need plenty of work are selling faster right now, because of listing being down about 80% compared to what we usually carry. Virtually everything is selling before auction and above expectation.
“Indeed, more vendors recognise that the strength of the market now is a great opportunity for them to sell these properties.”
Smooth sailing for sellers in the Illawarra
Matthew Ivanoff, Principal of Raine & Horne Wollongong, says a shortage of listings in the Illawarra makes it the perfect time for owners to sell a property with a few issues.
“The exodus of buyers from Sydney in the wake of lockdowns continues, and if a property In Wollongong has a shortcoming and it is marketed correctly, then the chances of achieving a high price and a rapid sale multiply.
“It’s hard to put a value on what you’ll get for a home with a few limitations. But with listings down 10% compared to this time last year in our region, apartments without balconies or houses on busy roads are selling in days rather than weeks,” said Mr Ivanoff.
“Properties at the back of a battle-axe block can be challenging to move faster in softer markets as it has no direct street access. But not in this market.”
For example, Raine & Horne Wollongong recently sold 3a Cadigan Place Dapto on a battle-axe block for $100,000 above expectations due to the lack of stock.
Hot North NSW market perfect for selling properties with deal-breakers
According to Bryan Bolitho, Principal of Raine & Horne Tamworth, the deal-breakers with a regional property tend to be overlooked by buyers and investors when the market hots up.
“In quieter markets, properties built on streets with road widening clauses, for example, will be challenging to sell, yet in a market, as we have now, they will sell promptly,” said Mr Bolitho.
In Tamworth, units without lock-up garages or internal laundries have traditionally been deal-breakers with many buyers.
Recently, Raine & Horne Tamworth listed a block of three one-bedroom villas. “These are fibro and corrugated iron cladding units, and 12 months ago, we wouldn’t have had any interest in these units,” Mr Bolitho said.
“Within days, we’ve had three private inspections and a Facetime video inspection with an investor from Sydney. We also received 30 email enquiries within two days of the property listing.”
Source: Raine & Horne Group
