I’m pleased to report that the end of 2016 has produced one of the most remarkable December markets within living memory in Melbourne.
December is normally a month where we see buyer numbers decrease, due to the volume of stock that generally sells in the preceding months. However, this year the shortage of available property for sale in Spring meant that buyer numbers remained strong right through to the weekend before Christmas. Exciting was the fact that finally more sellers decided to capitalise on the strong market by selling late in the year, encouraging many formerly frustrated buyers to act quickly.
The result was a record-breaking December not only for the overall volume of sales, but also for the prices achieved in many cases. Indeed, even as late as December 17th, we saw numerous auctions exceeding their reserves by as much as 10-20%.
This unusual market has created a situation where we see a real opportunity for anyone who is planning to sell in 2017, particularly for those who are able to sell early in the coming year. There are two key reasons for this.
Firstly, there are still an enormous number of buyers who have missed out in what has been an extremely competitive market, and who will be keeping a close eye on the various real estate websites over January to try and ‘get a jump on the market’ by buying while other buyers are on holidays.
Secondly, we need to keep the impact of interest rates in mind in planning our year. The Banks have already begun moving their mortgage rates upward, particularly on fixed rate loans, and the general consensus seems to be that the next move in official rates from the Reserve Bank is likely to be upward as well. When the Reserve Bank does make that move, you can expect an increase in the number of properties being listed for sale as many advisors will be suggesting to their clients that we may have reached the top of this current price cycle. So if you’d like to make the most of a shortage of available property for sale, (just as the vendors have done in 2016), you might be wise to get in before any interest rate rises.
Remember, our team will still be available to answer all your queries throughout the holiday period, so don’t hesitate to call us if you have any questions.
On behalf of all of our team at Ian Reid’s Vendor Advocacy Australia, we wish you and your family a very Merry Christmas and a happy New Year.