Wednesday, September 30, 2009

Seasonal vacancy rates blow out. Selling this year? time is running out!

Rental Crisis abates as seasonal vacancy rates blow out, relieving pressure on tenants while landlord’s control on the market returns to the long term normal. We constantly hear about the housing shortage and while that must be true (everyone says it is), just at the moment there is little evidence of this.

The rental market is subject to seasonal fluctuations more than sales. Interstate moves are more prolific during the summer months and the school terms play a significant role in the timing of a rental move. So what is the issue?? Last year rental properties were at record low vacancy rates, and rental prices were rising as a consequence. It was common to have applications over the asking rent and we even heard about tenants bidding for properties. Given rentals spiked in spring last year and tenancy agreements generally run for 12 months, there will be some cases where rents will be realigned to today’s more balanced conditions.

The impact of the first home owner’s bonus has played a part as well. The lead up to the 30th September wind back has created a bubble of additional vacancies which comes on top of the seasonal impacts. From our figures, 28% of current vacant properties have been a direct consequence of first home buyers breaking leases.

Vacancy rates across Adelaide are currently tracking around 1% up on their lows and are as follows:

Coast - 2.2%

Northern - 1.2%

West - 1.35%

East - 2%

City/South - 3%

Hills - 2%

The rental market is considered as in balance when the vacancy rates sit at 2%.

The sales market is really great for agents and sellers at present and sales are fast and furiousÉ again, it is not a boom as when a property is not price aligned to the market it will just sit there. In the boom, even overpriced properties were selling.

The AFL Grand final is behind us, long weekend and school holidays are nextÉ then the spring story will begin in earnest. Call one of the team ASAP if you want to sell this year, time is running out.

Remember, some fantastic Q&A can be found at

http://asktoopie.blogspot.com



Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

1 comment:

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