The past month has been a particularly busy period for the Victorian property market, capped by the weekend prior to Easter when a record breaking total of more than 2,000 properties went under the auctioneer’s gavel.
Not surprisingly, the market has experienced a slight flattening as we move towards a more balanced market. This can be seen in the softening of some sales results, driven by a rise in the volume of properties for sale along with increased talk of interest rate rises. However, it is important to understand that well-presented properties that are priced to meet the expectations of the market are still achieving strong results. In fact, we are still seeing some results that are achieving close to the prices everyone was reading about during last year’s peak.
We are finding that in the current market conditions vendors are well advised to take a more conservative approach, keeping a clear focus on pricing and presentation. Failing to address either of these key elements tends to result in reduced buyer interest and less competition between buyers, which inevitably impacts on the price achieved. The gap between those who are doing the right things, and those who just relying on market demand to overlook any shortcomings, is getting bigger.
As is always the case in the Victorian market, the current conditions are a result of movements in supply and demand, which means we are approaching an interesting period right now. History shows that stock levels tend to drop after East each year, and this is likely to be even more apparent in the lead-up to the election, as many sellers will sit on their hands and wait for the result. Given that none of us knows what the overall economy may look like later in the year, particularly with interest rate rises tipped to begin in the middle of year, astute sellers may be well advised to make their move in the next month rather than waiting.
What is clear to us right now is that if you want to get in before the depths of Winter, a well-planned strategy where you tick all the boxes whilst taking advantage of the lower stock levels will produce a result that is likely to be a positive one, and in some cases an exceptional one.
Of course, a decision like this will depend on your specific property and your local market. Our team of Advocates have the experience and market knowledge to assist you in these considerations, so don’t hesitate to make use of our objective advice. We are always happy to assist, so feel free to give us a call this week.