New research from Openn, an online property sales platform, has identified a crucial shift in the Australian property market. By analysing April's sale prices across all states and territories and comparing them to expected sale price ranges, Openn has uncovered noteworthy trends.
Approximately 78% of the residential properties in the analysis sold within 10% of the modelled price estimate, marking a significant increase from earlier in the year. Notably, in New South Wales, 20% of properties sold for 10% or more above the modelled price expectations, with only 8% selling at 10% or more below expectations.
To establish the expected selling price, a computer-generated estimate was created using an algorithm that mimics a valuer's methods. This estimate was then compared to the agent-advised sale price.
In each state, the proportion of properties sold at 10% or more above expectations significantly surpassed those sold below expectations, signalling a turning point in market conditions.
Openn's Managing Director, Peter Gibbons, asserts that digital sale processes can significantly assist agents and homeowners in tackling the pricing complexities of an evolving property market.
"Most states are now experiencing stabilised market conditions, which presents new opportunities for sellers to obtain optimal prices for their properties," Gibbons explains.
He adds that Openn's platform is particularly effective in this regard, as it enables buyers to submit offers digitally and in real-time, offering a live snapshot of the property's market valuation. Agents can then take advantage of transparency settings to reveal the prices of competing offers to other participating buyers.
"In a rate-increasing environment, buyers are understandably approaching purchasing decisions with great caution and deliberation. By offering more transparency in the sale process, agents can provide buyers with social proof and comfort in the demand for the property. This gives buyers confidence to present their highest offers, while helping sellers extract the best possible price from the market," he said.
