The market is hardly falling off a cliff going into 2018.
The Ray White Group has just recorded it’s strongest January result ever with more than $2.4 billion in unconditional sales, which is an exceptional way to kick off 2018. This was on the back of another strong month in December with $3.69 billion in sales.
January is traditionally the quietest month in the property calendar, so the group’s sales results indicate the fundamentals of the broad market remain strong. The market is hardly falling off a cliff. Quite the contrary. The strong feedback from our network is that the year has kicked off with balanced momentum.
In Perth, our CEO Mark Whiteman says a combination of optimism and new recruits have helped propel the West Australian sales lift. The State Government has also committed $6 billion in the current budget to infrastructure spending as the economy moves away from its reliance on mining. While this lift in our West Australian sales is very welcome, it’s too early to call the bottom of the market but it’s definitely an encouraging early sign.
And across Australia, it feels like a more balanced market, though underpinned by a shortage of stock in many areas but with continued depth in buyer demand.
The Victorian network continues to be a standout with strong growth, helped by the state’s incentives for first home buyers.
The New Zealand market saw continued activity over January which resulted in a number of new properties coming to market. Our New Zealand chief executive Carey Smith expects to see increased activity in February and March. However, with the change in policy regarding foreign buyers there’s still a degree of apprehension from both buyers and sellers.
During the December – January period Loan Market has recorded our best two settlement months ever. The December result of $886 million set a new high watermark and this was followed by $822 million in January. The January result represents 34 per cent year on year growth and reflected a strong pipeline of activity in the December quarter.
And it’s great to see so many new businesses around the network.
And it’s pleasing to see that we are receiving more positive feedback from our customers than ever before as our focus on customer service remains our highest priority.
Ray White maintained a fantastic vendor NPS of 91. Our response rate was a bit disappointing, dropping to 21 per cent but there is a natural dip over the Christmas break. We did send 1972 more surveys in January than December.
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