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Australia’s unhappiest pandemic home sellers revealed

Published: (Updated: ) in Australian News by .

A survey found seller happiness was down 21 per cent for Australians who sold property worth more than $1.5 million in April, compared to the first financial quarter of 2020.

Million dollar home owners copped a big hit in real estate during COVID-19, and they are not happy about it.

A survey found seller happiness was down 21 per cent for Australians who sold property worth more than $1.5 million in April, compared to the first financial quarter of 2020.

The figures were recorded by Australian real estate rating and ranking site RateMyAgent in a survey of 20,000 home sellers.

"How does the old saying go? The bigger they are, the harder they fall," RateMyAgent CEO Mark Armstrong told of the survey results.

"When you go to metropolitan markets where property is more expensive, they've had a greater growth in (market) dollar amount growth and the psychology of having to accept a little bit less on the other side is more in a metropolitan area than a regional area in rough numbers.

"Psychologically, sellers look at the dollar amount, not the percentage of fall.

The survey showed homeowners in more expensive, metropolitan areas such as Sydney and Melbourne were unhappier than those who sold in regional areas.

The survey also found overall seller price satisfaction – meaning the rate of homeowners happy with the dollar figure they received for selling their property - dropped by five per cent in April to just 37 per cent of vendors.

Mr Armstrong said he believes COVID-19 "stunned" Australia's property market into inaction when compared to 2019.

"We're starting to see light at the end of the tunnel for COVID-19 but I think April was the height of uncertainty," he said.

"We didn't know whether open inspections could continue, auctions were cancelled. People didn't even know if they could transact property.

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"Real estate markets hate uncertainty."

The survey details, state-by-state, which property markets around Australia are the happiest in terms of property sale returns.

Residents in the ACT came in as the nation's happiest sellers with 45 per cent of people satisfied with their home's sale price.

South Australia and Victoria were recorded as a joint-second, followed by Tasmania, New South Wales, Queensland and Western Australia represented the country's unhappiest sellers.

"The ACT market has a more stable employment base. It's a very big centre of politics, of government. You've got a big education centre there," Mr Armstrong said.

"Those industries, they don't get as affected by the uncertainty – their jobs are more rock-solid."

WA house sales slump

As state COVID-19 restrictions begin to ease, Mr Armstrong said he expects Australia's property market to remain in a state of plateau through winter before rebounding in spring.

"The spring market is the real test of happiness because we tend to see the level of supply of property grow significantly (then)," he said.

"My gut tells me that this Spring we'll have a lot of property – a fully-supplied market because there was 20 per cent less property sold in 2019 - the market was held back in terms of supply in 2019.

"If you consider that the level of supply through April and May - because of COVID-19 - was a lot less, the supply is going to bounce back and it's likely to bounce back in Spring in a potentially aggressive way."

Source: 9News

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