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Why February is the perfect time to buy or sell property
Continuing on from the optimistic market sentiment observed in late January, it’s beginning to feel a lot like February is the month to be making property moves. Where does this enhanced confidence in the market come from? There’s a few factors at play, actually! Here, our experts deliver the details.
What is this February feeling?
The festive season has well and truly passed us by, which means property investors have spent time early in the new year setting financial goals and identifying locations likely to produce the best outcomes for their circumstances and aspirations – and now it’s time to act. For vendors, the momentum created by investor demand makes February an ideal time to go to market. With the encouraging desire of proactive property purchasers, vendors will enjoy standing out in a less competitive sellers’ market.
How the statistics support the February feels:
It’s been a promising start to the summer of selling, and our agents have been right there in the heart of the action. The average Victorian clearance rate sits at 69%, with Melbourne performing robustly compared to other capital cities. This is up from 53% at this time last year. In fact, the week ending 2nd February 2020 saw 163 properties presented to auction, a whole hundred more than the 153 that opened the selling season for 2019 (REIV). This is great news for our vendors, who can be confident of consumer demand creating the competition they need to get the best possible price for their property.
In the latest announcement from the Reserve Bank of Australia, the cash rate has remained on hold at 0.75%. The RBA Board are satisfied that the record low interest rates are working to stimulate Australia’s economy. Governor Philip Lowe acknowledged that these the low rates pointed to continued strength in the property market:
“There are continuing signs of a pick-up in established housing markets. This is especially so in Sydney and Melbourne, but prices in some other markets have also increased…. Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality.”
Philip Lowe, Governor: Monetary Policy Decision
Melbourne house values also lifted 1.4% across January, with the median value reaching $798,671. Additionally, the CoreLogic national home value index increased by 0.9% over the first month of the year. This now takes the annual growth rate to 4.1%. This pace of growth has not been observed in a twelve month period since December 2017.
With these stats providing ample context, it’s no wonder we’ve got that February feeling! Get in touch with our team today to find out how we can support your real estate goals in 2020.