Well, it’s certainly been a memorable year in the Victorian property market, but one that gives us every reason to look forward to 2020 with confidence.
At the beginning of the year there was a real sense of uncertainty about the property market. This was particularly apparent in the lead-up to the federal election, with property taxes high on the agenda of different political parties. However, once the election was out of the way, auction clearance rates immediately jumped from the 40-50% range to 60-70% and have now settled in the mid-70% range during the second half of the year. With three cuts to official interest rates and restrictions on lending loosening, consumer confidence in property has clearly returned.
This confidence has produced an immediate rebound in property values, with analysts reporting rises in our median property prices for the past six months in a row. It is important to remember that these increases have been reinforced by an ongoing shortage of available property, with turnover still down by around 20% on normal levels.
This shortage of new listings is an indication that many property owners were reluctant to respond to the rebound until they could be sure that it was not simply a short term ‘blip’ in the market. It takes time for many people to be sure that the wheel has turned, but the good news is that some agents are reporting increased interest from sellers planning on making a move early in 2020.
Given the large number of aspiring homebuyers who have been unable to secure a property in the competitive market we’ve been seeing in recent months, there is no doubt that there is sufficient interest to support an increase in supply, so we expect the market to be a positive one in 2020.
Experience tells us that the vendors who get their properties on the market early in the new year tend to get better results than those who wait until March or April. This is the time of year where there tends to be lots of motivated buyers, but less good listings, and there will certainly be a big pool of buyers keen to act at the start of 2020.
So, if you or someone in your family are considering making a move, our advice would be to start making your preparations now so that you won’t have to deal with any unwanted delays when those opportunities arise in the new year.
Whilst our offices will be open on a limited basis between December 21st and January 2nd, our advocates will be available during this period should you have a question or need assistance on any property matter.
In closing, on behalf of everyone at Ian Reid Vendor Advocates, I would like to wish you, your family and friends all the best for the coming festive season. I hope you have a safe and relaxing break.