Open Letter to our Valued Clients
To our valued clients,
The past month has seen many positive developments in our fight against COVID19 which I am sure you’ll agree, are greatly welcome.
The shops, restaurants and cafes have reopened, the kids have returned to school and most importantly we can see more than one of our friends or family at a time.
For us as a business, the easing of restrictions has meant we can once again conduct Open Homes and our team couldn’t be happier.
Take a look at what’s been happening in the team:
Sales Department Update
Buyer demand has all but returned to the same volume that we were experiencing pre-Covid19. Since 1 May, we have received more than 5020 buyer enquiries and 1240 groups of buyers have attended our Open Homes. Ninety vendors listed their property for sale and we’ve sold 105 to date. As you can see from those numbers, there is strong buyer demand, however not enough properties available for them to purchase which is driving large Open Home attendances and multiple offer situations.
Interestingly, we had one property in Archerfield last week receive 56 enquiries in 48 hours of it being listed, more than 80 people attended the Open Home and we received four offers on Saturday afternoon meaning it sold in 3 days. There are many more stories like this, so from the activity I have seen in recent weeks, my advice to sellers who are uncertain about the market or holding off, is don’t. Traditionally, less people list their properties for sale in Winter therefore with less competition in the market but more buyers, it's an opportune time.
Our team of conveyancers have been working with more than 125 buyers and sellers so far this month to process their settlements. Many of these have chosen to use the e-Conveyancing platform, PEXA, which offers faster access to funds through electronic settlement and real-time lodgment of documents.
Property Management Update
Our property management team have done an exceptional job during the past month to get our landlord’s properties rented. According to Domain, the average number of vacant properties in Brisbane increased by 0.8% in April (MoM) however our vacancy rates decreased by 0.1% (MoM), something I know the team is very proud of.
To put some numbers around that, since May 1 we’ve received 6503 tenant enquiries, 2383 tenants registered to attend an inspection of which 1185 submitted an application resulting in 210 properties being leased.
These results can be attributed to many factors including advertising properties as fast as possible, competitively pricing properties inline with market activity, regular communication with the landlord, offering private viewings for tenants and utilizing our database of 80,000 tenants. Additionally, we’re seeing up to 50% more tenants resign their lease as they’re not inclined to move at the current moment.
Our Mortgage & Finance team continued to work predominately with homeowners wanting to refinance and take advantage of the record low interest rates. Interestingly, the Australian Financial Review reported more than 26,000 loans valued around $11.5 billion were refinanced during March alone – the highest number recorded since December 2019 and an 8% increase from February.
In addition to the low interest rates, a number of lenders are continuing to offer $2000 - $3000 rebates when you refinance, however we are noticing they are starting to wind back. One bank is currently offering a $3000 refinance rebate plus a bonus $1000 for essential workers so there are still good deals available. If you haven’t already, I strongly urge you to review your principal/ investment property loans.
You can book a 15-minute chat with one of our brokers here, who will advise you on all your options including potential monthly savings and cashback offers. For those of you who might not be aware, Mortgage Brokers do not charge the buyer / homeowner a single cent, so their services are free for you to use.
To finish, I want to reassure our clients that despite the doom and gloom that some media outlets are reporting about the real estate market, in my opinion it is holding strong and will not encounter the devastating losses that some are predicting.
Yes some properties will take longer to sell or rent, and others may have to be realistic in their price expectations but that is what our team is here for. We’re working 7 days a week, myself included, to help you buy, sell, rent or refinance by providing you with honest, current information about the market and how you should approach it based on our experience.
We’re all in this together, and we will make it through 2020 together.
Take care and stay safe.
Managing Director of The Coronis Group