I must say it’s been an interesting year for the real estate industry. I think the media have put the fear in much of the community about what’s actually going to happen in the market this year and beyond. There are also a number of conflicting opinions which make it challenging at times to make decisions on timing of buying and selling.
There has been alot happening that has effected the number of buyers in the market. This includes changes to overseas borrowing which found many Chinese investors pull out of the Australian market due to the change in lending criteria. On top of that, in recent months the fallout from the banking royal commission and APRA’s stricter lending policies has made it harder to obtain finance for everyday Australians.
The stock levels of properties coming onto the market have been up to 40% down on previous years – which I can only put down to potential sellers sitting back and seeing how things unfold. People have put their moving plans on hold until they can understand where the market is going. This has in turn kept the market in our area relatively strong due to low stock. There has been some movement in prices with the latest REIV stats showing Croydon down 5.7% for the June Quarter and Ringwood down 7.8% – yet both still up on this time last year based on annual stats (11.2% & 5% growth respectively).
Despite all this, it seems that things are starting to bounce back. As we head into Spring we are already seeing more property start to come onto the market. It has been very slim pickings for agents – and in turn has led to not much choice for buyers. Agents have had to work harder to find properties to sell, and also due to low stock have often struggled to find buyers the right property.
It’s important to keep in mind if you are buying and selling in the same market – the market in fact, has little impact on your overall position – in fact if you are upgrading in a flat market you are likely to end up in a better position.
We are experiencing that there is still really strong demand for properties and most of our properties are selling within 3-4 weeks. We are finding however it’s important to get the pricing right from the start. Many owners/agents are still listing properties quite high and finding they end up on the market for months and often end up with less then they would have if they would have been realistic from the start.
So, my overall opinion on where things are at in the market is that stock levels are increasing and competition is still relatively strong in our area (average of 7 buyers at Saturday opens). You need to price your property correctly from the start and remember if you are buying and selling in the same market, then this is a great market to be making the change.
For any questions about the current market, or for an updated appraisal on your home please contact myself or my experienced team on 9725 7444.