Strong Buyer Enquiry Leading Into Spring
After a hard slog for vendors and buyers over the last 18 months, all our key indicators suggest a far more fruitful Spring period ahead of us! Vendors endured some of the toughest selling conditions in years in this period, with government and lending uncertainty bringing a halt to the hot markets of days gone by.
With clearance rates moving above 75% on the last weekend of winter (and a return to warmer, sunnier skies) as well as CoreLogic reporting a 1.4% rise in property prices in August (the best growth since April 2017), there is certainly some renewed optimism amongst sellers. We have recently seen far more competition at auctions due to a combination of factors being 2 successive interest rate drops, the election result in May and a shortage of available properties.
Buyers have clearly come out in force over the last 2-3 months, which has been the main determinant of the higher clearance rates, with some results starting to jump past their reserves where there have been a few buyers keen at the same time. This has also led to a number of properties selling prior to auction or off market, with buyers very keen to make strong offers to avoid facing possible competition at auction. 12 of our 24 sales for August came from either off-market sales or prior-to-auction offers. This eagerness to secure property was highlighted by a 3-bedroom residence in Prahran selling after 3 open for inspections for over $100,000 in excess of the listed sales range, with a total of 4 offers being made in less than 24 hours.
So if you’re debating the merits of selling, renovating, reinvesting, or buying your first home or helping a family member break into the market, please get in touch with us to arrange a time to catch up over the phone or in person.
We hope you have a great Spring and our tip is for the Mighty Richmond Tigers to go all the way this year!