The relentless question to our team is “Whats happening to the market”.
So from our perspective here is the answer........
Firstly - there is a chronic shortage of available houses on the market for sale and this has resulted in would be sellers holding off until they can find their new home prior to selling their own. This compounds the problem of stock shortage.
Secondly - generally the buyers are less decisive and this is seen through tentative bidding at auction and an increased number of cool offs.
Thirdly - prices are holding in most areas but are under downward pressure in the mortgage and gas belts (in other words the outer suburbs where buyers have high percentage loans against their equity and need to travel in their cars substantial distances to work.)
Fourthly - buyer numbers remain constant and activity remains high amongst fewer numbers of properties.
Fifthly - good quality property is very hard to buy and purchasers are frustrated in trying to find that special property, and once found are faced with intense boom like conditions and fierce competition from multiple buyers.
Six - Rental properties reflect all of the above where quality rentals are still in hot demand and vacancy rates sit around 2% which is very healthy.
Summary: So in summary the interest rates have impacted the mortgage and gas belts however we believe this will settle down within a few weeks, quality properties everywhere remain in high demand and are still seeing upward pressure in there pricing due to the high level of demand and acute shortage of stock, which has under pinned prices across the market.
Toop’s Tip: Sell prior to all the spring releases, have a long 3-4 month settlement and buy in late spring when the market is flooded with stock.
Anthony Toop, Managing Director.
© Toop Real Estate Group