Inspire & Inform Episode 18

In E18 of the Inspire & Inform Show, Colin breaks down the latest auction results data and discusses a market rebound in some segments of the property market despite what is being reported in the media.

Please see below for the full transcript of this video

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Colin 0:03
Hello, and welcome to Episode 18 of inspire and inform, hey, this week I’ve been doing a little bit of reading, particularly from a couple of sources predominantly CoreLogic, and just trying to get a bit of an idea as to how the market is performing and faring over the last few weeks. So, so I definitely see, you know, personally myself in the business, we’ve definitely see an uptick in activity over the last couple of months. So just wanted to share that with you. And tonight in particular, I just wanted to share some market updates, and some option results with all of you and also some sales listing results, which has definitely been on a bit of a rebound. My name is Colin Lee, I’m the founder and CEO of inspire realty helping people build better futures together, My vision is to be the most trusted and transparent property investment firm. And in this series, in particular, I aim to inspire and inform you educate and to provide you with the tools necessary to help you make informed decisions about your property investments. I’ve been investing in property for the last 10 years. And since then, I’ve built a multimillion dollar property portfolio all across and diversified across the major capital cities in Australia. As a migrant, I’ve been here for 20 years. So I know that if I can do it, you can do it too. I have a belief that if if you have a will, there is always a way. And I believe that anyone regardless of your background, your experience, how much you have now how much you’re earning, you can change your future, if you have the desire to what you need is a dream and a team that will get you that. So just make sure you’re associated with the right people. So the past few weeks have shown signs, I believe have a positive turn in the housing market, there has been a massive strong rebound in inquiries and consumer sentiment. Obviously, a little bit outside of Melbourne, Melbourne option clearing rates and listings are starting to pick up with the relaxing of the lockdown rules. So I’m sure to see that Melbourne will pick up in activity, it’s only a matter of time in the next couple of weeks. So I thought I’d just share with you my screen just to give you a bit of an idea of the new listings. It’s a combined capital listing, listing chart listing listing job. And that’s comparative to the last back to 2016. So this is a five year comparison to date. So I’m just going to share that screen with you. So hopefully you can see this, the orange line is 2020. And if you look at all the other shades of blue, the markets in terms of listing have generally all performed around the same in the last few years. Except for 2019. Obviously things were a little bit of an outlier, but the trends do remain the same. And generally speaking, obviously, during the December period, listings after November significantly dives because of the holiday period. But as you can see, with the the orange line, we’re just about to hit October to the end of September today. And don’t forget, by the way, on the first of October, you will have to turn your plots I can’t remember, but it’s definitely savings. So just make sure you do that. But when during October we can already see in in September, from the beginning of September to October, there has been a little bit of an uptick in terms of listings. So vendors are more likely to test the market. Now there they see that the confidence is picking up. And so they’re willing to put their properties on the market for listing across the capital cities, though new listings, properties that are freshly added to the market over a period. And they have increased by about 1% in the four weeks leading up to last week, which is the 20th of December. So I thought I’ll just show that to you.

Colin 4:13
Also, just to show you, I guess the change in listings over the four weeks in comparison to the major capital cities, I hope you can see that. What that is is just showing you that the combined cities have had a total of 126 really largely driven by 382 new listings from Sydney, and also looking all the other capital cities apart from Darwin, and Melbourne, which has a significant drop in the listings from the last four weeks. Obviously that’s a bit of an outlier with regards to the lockdown. But yes, the combined capital listings have been driven particularly with the strong jam driven by Sydney with 382 listings over the same period. So I hope you can see that and I reckon the sentiment for listings is picking up. Also very quickly, I’m seeing that the option rates are also increasing. The recent article from core logic is announced that 70% or 70.5%, to be exact of home sell as volumes increase across the capital cities in terms of the auction rates. So there were about 1107 capital city homes taken option just this week. And of that 841 results were collected, and 17.5% of them were success of the option clearance. So in last week’s clearance was the highest clearance since March, which has been good. But also just to compare how we performed last year in the capital cities this time last year, about 1278 capital city homes option with a final clearance rate of 71%. So, in comparison, I think you know, we’re doing really well in Australia, we’ve been able to keep the demand quite strong for our major capital cities. I’ll show you this graph. Hopefully, you can see this, let me just pull this up first. So this kind of gives you a bit of an idea of how the major capital cities and the option rates have been faring. So let me just share my screen. There we go. So these are the clearance rates for the capital cities. So as you can tell, Melbourne has had the largest clearance rate at 74.5% 815 total options.

Colin 6:38
And, and 471 cleared. So it’s a very, very high proportion, still a lot of activity in Sydney, in Melbourne, have a lot of predominantly online options. But still, the clearance rate has been about 28.6% obviously, a lot less options as well. But as you can tell out of the 60 there were 14 that were cleared. And so I still think Melbourne has got a long way to go. But it’s definitely starting to pick up in Brisbane said 50% and total options. 8528 cleared so Brisbane is also starting to pick up Adelaide at 77.3% perfect 22.2% Tasmania for some reason, there hasn’t been any results. And Canberra 84.7 84.9%. So the average is 70.5% auction clearance rate, auction clearance rates across the capital cities 1107 properties went into option, which I think is a very, very good result considering you know, the the covid pandemic situation that we’re in, thankfully, you know, things are really on the rise. I think in New South Wales, there has been zero confirmed cases for the last couple of days. So things are looking really well where I’m from. Obviously, it’s a little bit different in the capital cities, I spoke to my auntie yesterday who lives in Melbourne, and she’s a nurse. And she’s finding it really difficult to, you know, to to go through this whole thing. So you know, it was it was it was tough for them just to be isolated, isolated from everything else outside. You know, just just to get a simple haircut and go out for a walk has just been a real challenge. So it’s good, it’s good that Melbourne i think is coming through. So hopefully we see a rebound in Melbourne’s option results. Anyway, I thought I’ll just share a little bit of the market update tonight, if you want it to get a bit more information, and I can certainly show this to you, without really going into it too much. Really, I think this is something I have been reading over and over. And you can just tell this, there’s differences between the major capital cities and then you’ve got units and houses as well in terms of how they perform in their results in terms of options. So this is something really nice to kind of have for bedtime reading, not something I would recommend that you would go through in detail if numbers don’t excite you. Unless of course, you’re Andrew who loves numbers and last poring over numbers. But bottom line is I can see that there’s a great result so far. In particular, I think, you know, Sydney has been driving it quite quite a fair bit. But I’m sure the other major capital cities will follow in terms of the option rates very, very soon. So I hope this has been useful for you. If you are interested in having a chat with myself or one of my team members about your property strategy about where you think would be the best city to consider looking at opportunities for investing, or you want to talk about financing and what you should be doing in terms of financing now for your properties. Feel free to drop us a line and Most certainly be more than happy to help you. Recently I’ve been working with a lot of home purchases, to help them finance but also look at some opportunities for their own home so I don’t just work in the investment space. If you’re looking for a home, feel free to get in touch with me just to get a second opinion about what you think is fair value on the property that you are currently looking at. And more importantly, whether you can afford and get the finance for that particular property. So just look after yourself. Pay Be kind to each other. And I hope to catch up with you again sometime soon. Next week on the same channel, inspire and inform every Wednesday at 6pm. Thank you for your time and have a great evening. See you then, bye for now.

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