Rob Forde talks about the market place:
Market Update 14/05/2012
Before the write up, I have also included a link to a recent online article looking into the growth of online marketing in the market place.
There were some good signs in the marketplace over the weekend. Buyers are taking note that we are currently experiencing some of the best buying conditions we have seen during the last decade. A good indication of this, is the renewed interest around auctions. At an auction in Lockley’s on Saturday, for George Kiritsis of Ray White Mile End, there were between 60 and 80 onlookers and 12 buyers registered to bid. The brand new 4 bedroom 3 bathroom home sold under the hammer for $830,000, a great price.
Both buyers and sellers currently have a unique opportunity. Buyers are able to take advantage of excellent buying conditions and sellers are able to capitalize on the increased buyer activity, together with the opportunity to buy really well in the same market. While the property growth that was experienced in the boom is a distant memory, buyers are starting to see value in property again. Property prices are largely driven by housing affordability, which takes into account a number of factors including wages, borrowing costs, maintenance and unemployment to name but a few. There is no question there have been changes in the market, it can be evidenced by the RP Data Riskmark graphs below.
According to RP Data’s research director Tim Lawless, nationally the housing market gains seen throughout February and March, which delivered a flat first quarter result, have now been mostly offset by the 0.8 per cent fall over the month of April.
“Our estimate of transaction volumes to February suggests that the two interest rate cuts in November and December last year are yet to provide a sustained stimulus to the market, with transaction volumes remaining reasonably steady at around 31,000 sales each month.“Comparing this with the sales rate through mid-2009 when around 45,000 homes were selling each month, the slowdown in buyer activity becomes quite clear,” he said.
According to RP Data, the premium housing market remains the weakest across broad price brackets.
The most expensive 20 per cent of suburbs across the capital cities have seen dwelling values fall by 5.7 per cent over the twelve months to March this year while the most affordable twenty per cent of suburbs have seen values decline by 2.3 per cent.
With the market continually changing and different opportunities presenting across all price segments, it is important you speak with you local real estate professional to hear where the best opportunities lie. You will be much better placed if you able to speak with a mortgage broker to obtain pre-approval, as it will make sure you are prepared should the right opportunity present.