Digital offer management platform Propps and ASX-listed PropTech Group, operator of real estate CRMs VaultRE and Eagle, have announced a game-changing partnership that will enable agents to close more sales with less admin work.

 Propps CEO and Founder Daniel Bignold says the partnership helps agents by not only providing easier access to its services, but also by seamlessly integrating these solutions within their CRM, saving them the frustration of having to log into multiple different platforms.

“Thanks to this partnership, agents can receive and manage Propps offers directly within the CRM where they already do all of their other daily work. PropTech Group and Propps have already deployed the integration that allows buyer and offer data to automatically flow from Propps into your CRM. Soon, we will roll out the ability to also manage your Propps offers from directly within the CRM,” Mr Bignold says.

“Agents want as much time as possible to list and sell properties. By using Propps and its new integration into PropTech Group’s Eagle and VaultRE CRMs, you can manage offers more effectively, give your vendors a better experience, and do less admin work, so you can pitch more vendors and win more listings.

“Forty-one per cent of agents use a PropTech Group CRM. This partnership will make their life easier and make them more productive.”

Joe Hanna, CEO and Managing Director of Proptech Group, says: “It’s clear that Propps works and that agents who use it, love it. The company is not even two years old yet but its platform has already managed over $6 billion in offers.

“Nearly half of Australia’s agents already use one of our CRMs, so by integrating Propps, we’re making it easier for agents everywhere to benefit from their digital offer management solution and get more done with less admin work.

“You will be able to do everything from subscribing to Propps to managing your digital offers from right within your CRM.

“Our customers tell us that they hate having to log into multiple different tools to accomplish different tasks. So it’s our goal to integrate every important tool that an agent needs into the CRM that they already use all day, every day. We already have more than 1500 API integrations. The result is to make the agent’s job easier, make agents more productive, and help agents earn more money.

“The Propps ‘Make an Offer’ system is a simple and intelligent way for agents to centralise offers in one place in a consistent format. It smoothly integrates into an agent’s current workflow, CRM and website, saving hours of admin time, while delivering a consistent customer experience for buyers and vendors.”

The smaller capital cities of Adelaide and Brisbane continue to drag up property prices while Sydney and Melbourne have started to stagnate.

The latest data from CoreLogic shows that across the country property prices rose 0.7 per cent last month, with Brisbane prices surging 2 per cent and Adelaide 1.9 per cent.

Canberra and Perth saw rises of 1 per cent, with Darwin increasing 0.8 per cent. Sydney values fell -0.2 per cent while Melbourne prices dropped -0.1 per cent.

Over the past 12 months, property prices around the country are now 18.2 per cent higher, led again by Brisbane with an increase of 29.3 per cent.

 

Change in Dwelling Values - March 2022

Source: CoreLogic

CoreLogic’s research director, Tim Lawless, said that while prices are still moving higher, the rate of growth has slowed in nearly all markets.

“Virtually every capital city and major rest-of-state region has moved through a peak in the trend rate of growth some time last year or earlier this year,” Mr Lawless said.

“The sharpest slowdown has been in Sydney, where housing prices are the most unaffordable, advertised supply is trending higher and sales activity is down over the year.”

“There are a few exceptions to the slowdown, with regional South Australia recording a new cyclical high over the March quarter and some momentum is returning to the Perth market where the rate of growth is once again trending higher since WA re-opened its borders.”

The move towards the regions is continuing to put upward pressure on prices with regional dwelling values increasing 5.1% in the three months to March, compared with the 1.5% increase recorded across the combined capital cities.

Rolling 3 month change in dwelling values - March 2022

Source: CoreLogic

Along with slowing growth rates, national housing turnover is also easing, with preliminary transaction estimates for the March quarter 14.3% lower than the same period in 2021 according to Mr Lawless.

“Nationally, the volume of housing sales is coming off record highs but there is some diversity across the capital cities in these figures as well,” he said.

“Our estimate of sales activity through the March quarter is 39% lower than a year ago in Sydney and 27% lower in Melbourne, while stronger markets like Brisbane and Adelaide have recorded a rise in sales over the same period.”

One of the reasons for the divergence between the smaller markets and the larger capital cities has been the level of new listings.

While advertised inventory, at a national level, is 30% below the previous five-year average there are still significant differences between the different capital cities.

In Melbourne, total advertised supply was 8% above the previous five-year average towards the end of March, while the number of homes available to purchase in Sydney had virtually normalised to be 7.5% higher than a year ago and only 2.6% below the five-year average.

Advertised stock levels in Brisbane and Adelaide remain more than 40% below the previous five-year average levels and around 20% to 25% down on a year ago.

“With higher inventory levels and less competition, buyers are gradually moving back into the driver’s seat. That means more time to deliberate on their purchase decisions and negotiate on price,” Mr Lawless said.

According to CoreLogic, the housing market has transitioned from a broad-based upswing to one the described as ‘multi-speed’.

Sydney and Melbourne, are recording flat to falling housing values, while at the other end of the scale is Brisbane and Adelaide are seeing annual growth rates of upward of 20 per cent.

However, CoreLogic warns that the outlook for housing remains skewed to the downside, with risks including the prospect of rising interest rates, affordability, higher supply and waning sentiment all likely to pressure the market.

Although there are going to be some drivers of growth to come including the return of immigration, a strong economy and the latest round of incentives for first home buyers outlined in the federal budget.

We know that moving to a new software can be daunting, and we’re committed to helping our clients that take that leap do so with confidence. 

Watch Leesa Sinn, General Manager at VaultRE, and Bill Nikolouzakis, Chief Operating Officer at PropTech Group, as they take you through the onboarding journey with VaultRE’s Property Management Module.

With extensive experience working as property manager, Leesa understood the value of inside knowledge in the field when she was building the support team for Vault’s PM Module. 

You’ll get an introduction to those key faces in this session, as well as a case-study of a typical agency’s onboarding lifecycle: from initial steps, to go-live, and then your post-launch support.

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After a record-setting 12 months of house price growth, there are signs that some of Australia’s largest property markets are starting to cool down.

The latest data from CoreLogic shows that both Sydney and Melbourne did not see house price growth in the month of February, while a number of other markets around the country have also started to see lower rates of growth.

Brisbane and Adelaide continue to be the standout performers from the capital city markets with increases of 1.8 per cent and 1.5 per cent last month, while Hobart also powered forward with growth of 1.2 per cent.

While regional values have continued to appreciate, with a sharp 1.6 per cent increase in dwelling values in February - significantly outpacing the combined capital cities that increased by just 0.3 per cent.

Canberra and Darwin grew by 0.4 per cent while Perth had a 0.3 per cent increase in dwelling values.

Sydney and Melbourne saw the softest conditions in the country with values falling by -0.1 per cent in Sydney and remaining flat in Melbourne.

Blog - House Price Growth Begins to Slow

Source: CoreLogic

According to CoreLogic’s director of research, Tim Lawless, all areas are now recording a slowing trend in value growth.

“Sydney and Melbourne have shown the sharpest slowdown, with Sydney (-0.1 per cent) posting the first decline in housing values since September 2020, while Melbourne housing values (0.0 per cent) were unchanged over the month, following similar results in December (- 0.1 per cent) and January (+0.2 per cent),” he said.

“Conditions are easing less noticeably across the smaller capitals, especially Brisbane, Adelaide and Hobart, where housing values rose by more than 1 per cent in February. Similarly, regional markets have been somewhat insulated to slowing growth conditions, with five of the six rest-of-state regions continuing to record monthly gains in excess of 1.2 per cent.”

Regional Prices Still Growing

Regional house prices have been strong performers over the past 12 months and increased by an impressive 5.7 per cent on a quarterly basis. However, this too is down slightly from the peak of 6.6 per cent recorded in April last year.

“Regional housing markets aren’t immune from the higher cost of debt as fixed-term mortgage rates rise,” Mr Lawless said.

“These markets are also increasingly impacted by worsening affordability constraints as housing prices consistently outpace incomes. However, demographic tailwinds, low inventory levels and ongoing demand for coastal or treechange housing options are continuing to support strong upwards price pressures across regional housing markets.”

“The slower growth conditions in Australian housing values goes well beyond the rising expectation of interest rate hikes later this year.”

“The pace of growth in housing values started to ease in April last year when fixed-term mortgage rates began to face upwards pressure, fiscal support was expiring and housing affordability was becoming more stretched.”

“With rising global uncertainty and the potential for weaker consumer sentiment amidst tighter monetary policy settings, the downside risk for housing markets has become more pronounced in recent months.”

Listings Still Below Average

Total listings are continuing to trend higher, however, overall they are still 13.3 per cent lower than the same time last year. Sydney and Melbourne are the two cities where listings are now back to normal levels, with Melbourne seeing listings 4.7 per cent above the 5-year average.

Mr Lawless said more listings is helping buyers, but there are still discrepancies between states.

“The cities where housing values are rising more rapidly continue to show a clear lack of available properties to purchase,” he said.

“Total listings across Brisbane and Adelaide remain more than 20 per cent lower than a year ago and more than 40 per cent below the previous five-year average. Similarly, the combined rest-of-state markets continue to see low advertised supply, 24.9 per cent below last year and almost 45 per cent below the five-year average.”

Blog - House Price Growth Begins to Slow

Source: CoreLogic

Pressure on renters is also still a factor in the current market with CoreLogic stating that rents increased by 0.8 per cent across the country a figure that was the same as January.

The February rise in rents was focused within the unit market with the national unit rental index up 0.9 per cent over the month and 2.4 per cent higher over the rolling quarter compared to +0.7 per cent and 2.0 per cent for houses respectfully.

According to Mr Lawless, this stronger trend in unit rents is most visible in Sydney and Melbourne.

“Anecdotally, demand for unit rentals in these cities has been bolstered by a combination of worsening rental affordability deflecting more demand towards the higher density sector, where rents tend to be lower, and demand starting to return from overseas arrivals,” he said.

CoreLogic notes that many of the factors that have driven house prices to record high levels are now starting to fade. Interest rates are as low as they can possibly go, listings are beginning to increase and the host of fiscal stimulus has now ended.

Meanwhile, the prospect of rising interest rates from the RBA and affordability issues will likely dampen demand.

However, there are also positives as borders are now open internationally, which will encourage people to return to CBDs and inner city areas. Improving economic conditions and higher wages growth should also help to keep a floor under housing demand and distressed property sales to a minimum.

Australia’s PropTech Group (ASX:PTG) today announced that it had…

Property prices across Australia have grown by 16.1% over the past 12 months…

In real estate, your name is your brand and unless your brand presents itself as trustworthy, it’s going to be difficult to continue to grow your business.

In years gone by real estate agents have had image issues with trust, which stemmed from a small minority of agents using dubious tactics to win listings and equally questionable sales tactics.

More recently, the industry has changed a great deal, and with data on property prices readily available to both buyers and sellers, the way real estate is conducted is more transparent and fairer than ever before.

With more data and technology at the fingertips of both agents and clients, the agent themselves becomes the differentiating factor within competition. For this reason, respect and trust within agents is more important than ever. Furthermore, it is often the most important factor a vendor contemplates when deciding on an agent.

Here are some things you can do to improve your trust with clients.

1. Honesty and Integrity

Being completely honest with a vendor is one of the most important elements in building trust.

Vendors want to know how much their property is actually worth and what the current market is like for their property. While it might be great in the short term to win a listing by telling a vendor that you can achieve a record price for their property, that will likely only lead to both parties being disappointed with the end outcome.

By being honest and having integrity on all matters, you’re going to be building a reputation for yourself that will resonate within the industry. In the short term, it might cost you a listing, but in the long term, honesty will build trust and set you up for a long career.

2. Communication

Vendors need to know what’s happening throughout the entire process of selling their property. Most really do appreciate all the small details and it’s important that you keep an open line of communication with them at all times. They certainly shouldn’t have to wait more than 24 hours for you to be calling them back.

While different vendors will prefer different forms of communication, be sure to keep them in the loop. That way they feel a part of the process and you are also building your relationship along the way.

3. Do What You Say You’ll Do

Actions speak louder than words, and given the previous reputation of real estate agents, it’s imperative that promises are kept.

Nothing can hurt trust between two parties more than saying you’ll do something and not doing it. Not following through on your word can often be interpreted as a false promise or lying, and in business this can be a deal-breaker.

If you make a promise to a client, ensure you deliver. If you can’t, get on the front foot immediately and let them know why, and what you’re going to do about it.

A vendor doesn’t expect perfection, but they do expect you to be proactive and to stick to your word.

4. Act Promptly

We all know that real estate agents are busy and are often on call seven days a week. Regardless, it’s still important that you always act promptly when someone reaches out to you. Even if you can’t resolve the issue that is being brought to you at that time, acknowledge the vendor and their problem, and provide them with a timeline of when you can get back to them with more capacity for problem solving, or perhaps even come back with a solution.

Simply getting back to someone's SMS, email or phone call gives the impression that you genuinely care and are proactive. From a vendor's point of view, they want an agent who is there ready to rally as many buyers as they can for their property.

5. Listen

With so much focus on making sales and winning listings, it can be easy to forget that you are dealing with real people who have genuine problems and are often going through big life changes.

Listen to what your clients are telling you and then do your best to solve the problem for them. Just the act of listening to someone immediately builds rapport and trust because so few people genuinely listen to others in a meaningful way.

For fast-talking, busy agents it can be tempting to throw down your sales pitch, but you’re far better off learning to take a step back and working on your listening skills. By listening to your vendors instead of talking at them, you will be able to better understand their needs and then fulfil those needs.

By building and maintaining honesty and integrity with your vendors, you are much more likely to create positive experiences which will improve your reputation as an agent.

10 Habits of Highly Successful Real Estate Agents

It’s not often that people will walk through an agency's door ready to list.

Closing deals and generating quality leads comes from creating a well-nurtured experience informed by good prospecting.

Technology and strategy work hand-in-hand in real estate sales and management, and we want to give you a leg up in taking your agency's understanding to the next level.

Join our presenters Daniel Streek, Tech Stack Consultant at PropTech Group, and James Ramsay, Customer Success Manager at Eagle Software for this on-demand webinar as they take you through their top tips for boosting lead generation and revenue through the VaultRE and Eagle CRMs, including:

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Video Demonstration

Here are the six videos we presented during the webinar, which demonstrate some of the Vault and Eagle CRM key benefits.

As house prices continue to surge higher around the country,  there are concerns that affordability is now a major issue for potential buyers.

Recently, a report from CoreLogic and ANZ noted that the ratio of housing values to household incomes reached a new record high. Meaning that Australian’s are spending more than ever on their mortgages. At the same time, incomes have been stagnating, and when compared to the high level of inflation we’re currently seeing, in real terms most household incomes are going backwards.

For first home buyers and upgraders, this is a concerning trend and it is contributing to a worse quality of life than most people had only a generation ago, where it was possible to raise a family on a single income alone.

For real estate agents, it’s important to acknowledge the rise in affordability constraints and understand what the impacts might be for home buyers and vendors alike.

Changing Demand Trends

In the past 12 months, property prices across Australia have risen by more than 20% in most areas. However, the surge in capital growth has clearly been led by freestanding homes. With people working from home and stuck inside for extended periods, demand quickly changed from inner-city locations to outer suburbs and semi-regional areas.

Now, we’re starting to see the second stage of the prices rise and how that has impacted affordability. Many freestanding homes in popular areas are simply too expensive which has forced people to look at different options including townhouses or apartments.

This trend is likely to continue and in the short-term, demand for smaller, more affordable types of properties will be high.

More Buyers Using LMI and Other Strategies

For first home buyers today, it’s not uncommon to borrow 95% of the value of the property or even 100%. Going forward, first home buyers are likely going to need to use different strategies for obtaining finance just to get their foot in the door.

Now, it’s already standard practice for this group of buyers to take out guarantor loans, pay LMI to obtain a higher LVR or look to use Government assisted programs such as the FHLDS.

These types of programs and options are helpful, but they do often mean the finance approval process takes longer. For agents, this is important to consider when assessing offers and working with buyers and vendors to facilitate a deal.

RentVesting

Many first home buyers are now faced with the prospect of not being able to buy into their preferred area and for many people in the larger cities, not being able to afford anything at all.

This might lead to a change in approach for younger people, who will look to invest in different areas that are more affordable, such as the regions. In a bid to get their foot on the property ladder. They will then likely rent in their preferred location.

In the past 12 months, we’ve already seen a big surge in the value of regional properties, which has come on the back of owner-occupiers looking to exit the cities and investors getting involved in the rising prices.

When potential clients come to you for advice, it’s up to you to be on the pulse with current market trends, but also how some consumers are navigating through those trends. A true professional real estate agent will be up to date with strategies like rentvesting and making the most of Government schemes such as FHLDS. Clients will appreciate your knowledge in the field.

Older Buyers

In the likes of Sydney and Melbourne, there is a growing trend towards older first home buyers.

Younger couples and singles in Australia’s two most expensive cities are forced to work longer to save for a deposit. We’re also seeing many couples choosing to delay having children simply due to the financial burden of rising living costs, which is predominately due to high mortgages and rents.

For agents, it’s important to understand the demographic that will be buying a certain property and how that is changing with higher prices.

Rising Rates

With many people already stretched to their limit, it’s important to monitor what the RBA chooses to do with monetary policy. While RBA Governor Lowe is still maintaining his stance on keeping interest rates low, there will come a point where they must rise due to ongoing inflationary pressures.

This could lead to lower demand from buyers as borrowing capacity has already started coming under pressure from the likes of APRA who are already raising their serviceability buffer ahead of any potential rate rises.

Rising rates will put further pressure on affordability and exaggerate all already stretch living costs. As a real estate agent, it’s important to understand what your potential buyers are faced with. When coming from a position of empathy and understanding, your clients and potential clients are more likely to trust and identify with you, thus building your relationships.

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