We look at the regions that have had at least 50 settled sales in both 2015 and 2016.
Each of the council areas that have recorded the greatest total value of sales over the past year have recorded a decline relative to a year ago.
The total value of transactions is an important figure to consider for real estate and mortgage professionals. Because commission is typically calculated for real estate agents on the value of the sale and for mortgage providers based on the size of the loan, understanding where the value of transactions is greatest is valuable. The following analysis looks at the value of sales across council areas; keep in mind that the size of the council region will have an impact. We have only included regions that have had at least 50 settled sales in both 2015 and 2016.
Brisbane has recorded the greatest total value of sales over the past year at $16.8 billion however, the value is -11.2% lower over the year. The first table shows the total value of sales over the past year and the previous year for each of the 20 council areas nationally with the greatest value of sales. Each of the top 20 regions listed have seen fewer overall sales and a lower total value of sales relative to 2015.
The second table shows the council regions that have seen the greatest increase in the overall value of sales over the past year. Circular Head in Tasmania has seen a 91.6% increase in the value of sales over the past year. Most of the regions listed have seen an increase in sales over the year, the exceptions have been Circular Head and Wakefield. This suggests that the increase in value has been more driven by an increase in values of properties rather than an increase in turnover.
The final table highlights the council regions nationally that have recorded the greatest decline in the total value of sales over the past year. Maranoa in Queensland has recorded then greatest decline in the total value of sales over the year, -48.1% lower. In each of these regions except for Isaac in Queensland, the number of sales is lower over the year which is clearly contributing to the decline in value of sales. A number of these regions are also linked to the mining and resources sector where home values have fallen substantially over recent years. These factors are also contributing to the slide in the overall value of sales.
With the turnover of housing stock reducing across the country and fewer homes available for sale the amount of commission is reducing. One strategy that will help to alleviate this reduction in the commission pool is for industry participants to target those areas where turnover is increasing. Mortgage professionals will need to look more at opportunities in the refinance space, in Sydney and Melbourne in particular, these opportunities should be sufficient given the significant rise in housing equity over recent years. Of course, another strategy to protect revenue is to improve market share. Many businesses tend to tighten the purse strings for marketing and business development, however a contracting market offers up good opportunities to expand market share and increase productivity.