Pre-Listing Activity Returning to Normal Levels
Pre-Listing Activity Returning toward Normal Levels
CoreLogic’s weekly report on market activity is showing that pre-listing activity is returning toward normal.
Pre-Listing activity is the work done by agents in between being asked in for an appraisal, and listing a property for sale. Not all appraisals become listings, but comparing the data year on year can serve as a proxy for market optimism.
The Covid-19 pandemic has seen a dramatic decrease in properties listed for sale over the last 2 months due to the uncertainty created by the impact on the economy of the pandemic led shutdown.
The attached CoreLogic data suggests that the public is gaining confidence in how the government is managing the crisis and starting to venture back into the market.
The graphs show a steady improvement in pre-listing activity since mid-April and we are now approaching levels consistent with 2019.
It should be remembered that the 2019 levels were impacted by the housing market slump at the beginning of the year that flowed into the federal election.
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Markets Do Not Like Uncertainty
We can see the rapid increase in activity after the election as uncertainty around housing policy was removed overnight.
Correspondingly, this year we see a much more measured increase in pre-listing activity as the market continually reassesses what our post Covid-19 future will look like.
One thing that is certain is that any market reacts badly to uncertainty, and as the uncertainty is removed, confidence returns.
We will be looking now to see how the economy rebounds and what the lasting impact on jobs will be because that is what will ultimately determine how quickly and strongly the market emerges from the pandemic.
On a positive note, we have seen strong demand for properties in the region, and excellent sale prices, but this must be balanced against very tight supply during the Covid-19 crisis.