August 13, 2022 | Beckett Market Snapshot August 2022

 

September 1st marks the first day of Spring – traditionally the real estate industry’s busiest period.

The property market experienced its first winter season since 2019, with a large contingent of buyers and sellers focusing on holidays rather than transacting in the market. This factored into an extremely low number of transactions for August with 2,436 overall transactions and an auction clearance rate of 68%.

It is hard to ignore that conditions are markedly different compared to this time last year as we settle into a more balanced property market. Four quick interest rate rises, combined with record high inflation has curbed the enthusiasm of buyers and ceased the ‘panic buying’ mentality displayed throughout 2020 and 2021.

Buyer demand is still strong, albeit far more considered and focused on quality and turnkey properties. Compromised properties are now proving harder for agents to sell which is a very common trend for balanced market conditions.

The new trend witnessed this year is the lacklustre interest for properties that require renovations or building works due to the fear of the building industry and the uncertainty around increasing material prices.

With September now underway, we are hoping that we experience our first spring season since 2019 and deliver an increase in stock levels and transactions.

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