Property market update

Market Update: August

One glance at the calendar will tell you that the official start of Spring is just a matter of days away. This is good news for many frustrated homebuyers as it is likely that we should start to see more new listings hitting the market over the next month or two. However, if you are planning on selling as part of this process, keep in mind that careful planning can make a substantial difference to your result at this time of year.

The Winter market of 2017 has been a particularly strong one for property sellers in Victoria. Melbourne’s weekly auction clearance rate has consistently remained above the key 70% mark throughout most of 2017, due in no small part to limited availability of properties for sale. With official interest rates looking likely to remain at their current record lows for some time to come, and median property values continuing to rise, it is likely that many home owners will put their property plans into action in the coming months.

In fact, recent data from Domain has indicated that Melbourne’s median house price has now risen for the past 16 consecutive quarters, including an increase of close to $100,000 in the last 12 months alone. If you are considering selling, you may be pleasantly surprised at just how much your property is worth right now.

One demographic that has been particularly active recently is the first home buyer market. With extra incentives having come into effect as of July 1st, the market in the sub-$750,000 price range has been very strong in most areas of Victoria. It is also worth noting that first home buyer activity also extends into higher price brackets in some areas of Melbourne. For example, the inner-suburbs often see first home buyers competing strongly into the mid-$800,000’s, with unexpected prices being achieved on a regular basis.

As I mentioned earlier, one of the key considerations for anyone planning a sale this Spring is to plan your campaign very carefully. Yes, Spring is regarded as one of the busiest periods for the property market in our state. However, it is also the season that has a particularly high number of potential distractions to your marketing campaign as well. Not only do we have school holidays to consider, but we also have long weekends in September and November linked to the AFL Grand Final weekend and the Spring Racing Carnival.

One area of concern 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 launch of their campaign until after the Grand Final has been completed. This tends to create a ‘rush’ of new listings arriving on the market in early October, resulting in a more crowded market for anyone auctioning in late October. Whilst this can be great for buyers who suddenly have far more options to choose from, it can be an issue for sellers.

History shows that the most effective way to avoid getting caught up in this rush of new listings is to get your own property campaign under way BEFORE the Grand Final weekend, but this strategy does require some careful planning. So, feel free to give one of our team a call this week if you’d like to discuss your options.

Best wishes,

Ben Reid

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