Positive Buyer Activity
Following on from our Newsletter last month, it seems as though buyers have indeed come out with positive intent to start this year. As we predicted, the buyers appear to have decided they want to take advantage of better conditions, highlighted by 7 out of 8 properties selling in the last two weekends (23rd & 30th March) from our office. This included 20 bidders for these properties over the two weekends, highlighted by 5 bidders at 6/43 Caroline St, South Yarra (a one bedroom apartment without carparking or outdoor area) and 3 buyers offering in excess of our range for 59 Wrights Terrace, Prahran (a rundown house) prior to auction to secure a sale. Buyers are out in good numbers and more importantly, looking to put their hand up at auctions and make offers on properties in the area.
Looking at statistics for the quarter, the CoreLogic Home Value Index of national home prices fell by 0.6 per cent in March – the smallest decline since October - to be down 6.9 per cent over the year. Tighter lending standards, specifically the availability of credit, is weighing on demand for home loans. Investor demand is also waning due to falling property prices and increased stamp duty for foreign buyers. Listings of homes for sale has increased. But prospective buyers may also be dissuaded from purchasing properties due to political uncertainty around the Labor Party’s proposed negative gearing policy and the upcoming Federal election. Given that any potential changes to these policies are not going to be brought in straight away and will only apply to new purchases, we are actually seeing many investors looking to secure property before any potential legislative changes.
As highlighted above, whilst we haven’t seen prices increase yet, the balance between buyer optimism and vendor expectations seems to have come together in our inner city sector in particular. Late last year was a tumultuous time in the property market, but it appears that buyers are now again seeing value, particularly when a property is promoted, presented and priced correctly. A perfect example of this was 6/43 Caroline St, which sat on the market for over 5 months last year and was picked up for a cheaper price for the lucky vendor who then did a smart renovation to the unit and invested in a strong marketing campaign, employing digital heavily and saw 5 bidders at the auction, selling under the hammer less than 3 months after they purchased it.
On a more personal note, we had a great time in early March supporting the Smith Family and their mission to support Australian Children in need by participating in the Corporate Triathlon Series at Elwood beach. A big thanks to our supportive friends, clients and families for getting around the fundraising event, which helped us raise close to 10% of the funds raised for the Smith Family across the event!
So, with a mixed end to last year seeming to even out to start this year and with this positive sentiment currently helping secure sales, please contact us if you’re looking to sell your home to talk about an on or off-market strategy.