2022 – a year like no other
2022 was a whirlwind year: it seemed like three years of life crammed into one. As a society, we resumed doing things as we had in the past, like travel, holidays away and community sport.
It was a year of firsts in many circumstances, as everyone tried to navigate their way out of the two-year lockdown.
Some experiences were positive and uplifting. Others provided some insights into the minds of many affected by our prolonged lockdowns. Flexibility and creativity were required to ensure a good outcome for all when it came to buying properties as we navigated the changing market. Traditional Saturday auctions were not as common as they had been in years before, and agents have developed new skills to better serve their vendors.
We felt the overall sentiment from buyers and sellers for the final quarter of 2022 picked up, when comparing the market to earlier in the year. It seems many buyers had put their searches on hold waiting for the significant drop in property prices that the media kept promising, which never really happened for the better properties.
As the end of year started to close in, we noticed a number of buyers come to the realisation that if they didn’t action their plans now, they would be starting 2023 in the same predicament as 2022 … with no home.
Although interest rates and building costs were rising, stock levels were shrinking and the two together didn’t equal total doom and gloom.
We are not arguing that the market hasn’t changed. It has. Interest rates have increased, with eight consecutive rises. Buyers cannot access money the same way they could 12 months ago. Building costs have increased. Tradespeople are harder to get. Many buyers and sellers have withdrawn from the market. Some properties have dropped in value. Overall sentiment has changed. But not everything has gone down.
More repeatable properties, such as apartments or townhouses (where townhouses are in abundance) have seen reductions in larger numbers. Quality family homes or properties that are not as easily repeatable have still been in demand.
It can be hard to determine changes up and down, as there are so many variables and rarely are the same properties up for sale again in quick succession to compare results.
When sentiment changes, many vendors choose not to sell, which means there are less homes for sale and, often, less of the better homes. Vendors can also have over-inflated expectations that weren’t realistic in the first place, so when they sell for less than their original asking price, it is assumed that the property is selling for less than it is worth; however, it may never have been worth the asking price in the first place.
We have taken this opportunity to reflect on some homes that have sold this year that have had two or more sales within quick succession of each other, and a high majority have sold for more than the previous sale price, also contrary to what the media has been telling people all year.
The below list of sold properties have had no, or very limited, changes to the properties before being put back on the market again.
While a few made losses, the majority sold for more than they were purchased for no more than a couple of years earlier. Highlighting that not everything is doom and gloom and each property should be considered on a case-by-case basis.
39 Black Street Brighton
- November 2020, $3.85m
- January 2022, $4.355m
- October 2022, $4.45m
15 Raynes Park Road Hampton
- June 2020, $1.98m
- October 2022, $2.52m
11 Glenbrook Avenue Malvern East
- June 2021, $4.454m
- September 2022, $4.125m (drop)
79 Bay Road Sandringham
- December 2020, $2.7m
- July 2022, $3.15m*
10 Seymour Road Elsternwick
- March 2021, $2.72m
- August 2022, $2.74m
15 Vardon Avenue Beaumaris
- March 2021, $2.085m
- August 2022, $2.3225m
14 Edro Avenue Brighton East
- September 2021, $5.5m
- November 2022, $5.85m*
2/2 Trawalla Avenue Toorak
- January 2022, $3.4m
- August 2022, $3.05m (drop)
8 Johnson Street Hawthorn
- June 2021 $2.675m
- November 2022 $2.370m (drop)
*is approximate value
So where does that leave us for next year? Perhaps a little wiser and less inclined to rely exclusively on the media hype.
For buyers looking to make a quick profit, perhaps buying now isn’t the smartest move, unless you can hold if the profit isn’t there.
However, for buyers looking to invest in a good property that will suit them for the next 5, 10, 20 plus years, know what you want, do your due diligence, and make sure you have a good strategy in place to purchase, and now may be as good a time as any to take that step back into the market. Agents have developed more skills, and data analytics are certainly helping vendors. Buyer representation, we believe, will become increasingly important.
We are confident that the clients we purchased properties for this year will be very happy with their purchases and the prices they paid for a long time to come.
So for now, we wish everyone who celebrates Christmas, a wonderful day and a happy new year to all.
‘Off-market’ or ‘pre-market’ Properties:
- 4 bed family home, ~580sqm, green belt of Sandringham – circa $1.85m
- Contemporary 3 bed TH near amenities, Brighton – circa $2.1m
- Californian Bungalow, 4 bed, near schools/amenities, Hampton – circa $3.1m
- Contemporary home w basement, court, pool, ~2,000sqm, Brighton – circa $13.5m
- Modern side-by-side TH, 4-3-2, master down, Hampton – circa $2.3m
- Contemporary TH style home, 4-2-2, near shops, Hampton – circa $1.8m
- Renovated, 4-3-2, ~600sqm, school zone, McKinnon – circa $2.1m
- Victorian single fronter, 2-1-0, Elsternwick – circa $1.55m
- Period Family home, 3 bed, 2 bath, close to amenities, Armadale – circa $3.2m
- Single level brick home, 4-2-2, large living, pool, Malvern East – circa $2.5m
- Family home 4 bed, opp. to add value, Camberwell High school zone – circa $2.8m
- Free standing Edwardian, 3-2-2, 2 living, courtyard, Prahran – circa $1.6m
- Townhouse, 3-2-2, 2 living, courtyard, Armadale – circa $2.2m
- Single level Victorian, renovated, 4-3,3, walk to amenities, Armadale – circa $5.2m
- Renovated, Double Fronted, Art Deco, 4,3,3 with a pool & spa, Malvern East, circa $3.3m