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Market Update: August

With the arrival of the official start of Spring now upon us, anyone planning on making a move in 2016 needs to be aware that this is a time when careful planning can make a real difference to your result.

There is no doubt that the lead period up to Spring has been a positive one for property sellers. Both Melbourne and Sydney have been reporting exceptionally strong auction clearance rates in recent weeks, due in part to the limited availability of properties for sale. However, it is clear that the combination of record low interest rates, strong consumer confidence and rising median property values is encouraging many people to bring their home buying plans forward wherever possible.

The good news for buyers is that we are definitely seeing an increase in activity from sellers, so the next few months look like being a busy time for the Victorian property market.

One segment of the market that has bounced back strongly in recent months is first home buyers. The traditional first home price bracket of homes under $600,000 has been very strong in all areas, with many younger buyers responding positively to a drop in activity from the property investors who were previously competing stronger for the same properties.

One example of this strength involved a property in Cranbourne that we recently worked on. With agent and vendor expectations around $330,000, the property attracted nearly 40 inspections in the two weeks. With no less than 18 separate offers being received, a sale price was negotiated into the early $400,000’s. And stories like these have become quite common of late.

It is also worth noting that strong first home buyer activity also extends into higher price brackets in some areas. For example, the inner-ring around Melbourne often sees first home buyers competing strongly up to the mid $800,000’s, with unexpected prices being achieved on a regular basis as well.

The most important factor for anyone planning a sale this Spring is to give careful thought to planning your campaign. Whilst Spring is widely regarded as one of the busiest periods for the property market in our state, it is also the season that has the most potential distractions to your marketing campaign. For example, we have the school holiday period, the AFL Grand Final weekend and the Spring Racing Carnival all coming up, just to name a few.

Perhaps the most immediate consideration for many vendors is the impact that Grand Final Day can have on a sales campaign. Each year, far too many home sellers make the mistake of leaving the start of their campaign until after the Grand Final has been decided. This creates a ‘mini-wave’ of new listings that hit the market in early October and means that anyone auctioning in late October will find that potential buyers have far more to choose from.

The most effective way to beat this rush of new listings is to get your own property campaign under way BEFORE the Grand Final weekend.

However, this approach does require some careful planning with an experienced advisor, so don’t hesitate to give us a call this week if you’d like to get things moving.

 

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