It's been three weeks since my last InsideStory and another three weeks of a phenomenal real estate market!
Properties under $1 million located close to the city or the beach are in very high demand. It has been quite exhilarating for sellers, with increasing numbers of surprise (positive) results at auction. As you head up the price ladder demand tapers off, but then you would expect that in a balanced market as there are diminishing numbers of people as it’s a smaller market.
The top end market, whilst smaller, is also now also starting to fire up by the looks. Since August last year, Toop&Toop have sold 46 properties over $1 million and we have seen first hand in 2014 a positive shift in sentiment.
Non-auction properties are selling typically within a day at, near or over the asking price (personally I feel some of these owners may have done even better at auction). We have regularly achieved results this month that are well over our clients’ expectations. Things are really moving fast. Auctions become very popular when vendors see these results come through. One of our top-end properties this month sold 20% over the reserve in a $1 million plus sale… that is incredible, a simply staggering result!
For those who remember "the good ol’ days", these conditions are as good as any of the ol’ days, if not better. I remember when it used to take 12 to 18 months to sell the average $1 million home, and that was just expected and part of the normal timeline of a sale. The equivalent today would be your $4 million property. While some of these high-end properties may be taking some months to sell, it’s certainly not years, and clients are seeing the results.
Nationally, over the past 12 months the top end of the market has been the best performer, with home values increasing by 10.3% across Australia. It's too early to call right now but given the market has been running hot since the September federal election, and 2014 has been phenomenal to date, we are starting to feel we are now into the next property cycle.
One thing appears certain; Adelaide's property market has bottomed out. While no one is predicting a massive boom, I think it would be credible to say that people entering the market now, or increasing their property portfolio of South Australian property are doing so at a very good time.
I am convinced that this is a great time to invest in Adelaide's property market, and a great time to have Toop&Toop help you do that.
Let's talk property, call us for a chat. It’s time to invest.
Anthony Toop, Managing Director.
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