Many of these stories are based around investors who have purchased in areas where there has been huge ‘artificial’ growth due to a specific event or opportunity. For example, if you purchase a property in a mining town and the mine shuts down, property demand disappears and it can leave property owners in a very vulnerable position.
What’s important is to focus on our local market. While Sydney and Melbourne have been experiencing huge growth in recent years, Adelaide has been consistent with smaller, moderate growth. This is placing us as one of the most attractive property markets in Australia right now. This week Adelaide topped national results again, showing the highest capital city home value changes for the past week and month.
One of the best indicators of consumer confidence in real estate are auction clearance rates. These figures give us an understanding of buyer and seller sentiment as there are no conditions or cooling off period allowed. Buyers have already received financial approval and are ready to purchase at the fall of the hammer.
Low auction clearance rates usually indicate a buyer’s market, while high clearance rates indicate it is a seller’s market, or a hot market.
Adelaide’s auction clearance rate remains extremely strong as we head further into 2016. There were 109 auctions scheduled last weekend and as a city we saw a clearance rate of 75 per cent. Compared to the same time last year, (according to RP Data), the Adelaide clearance rate was sitting at 53.3 per cent, showing us that there is significantly more confidence in our market.
From our own experience on the ground, we have seen some exceptional results at auction. Over the last four weeks, Team Toop had 49 auctions and we experienced an average clearance rate of 89.32 per cent. One weekend achieved a 100 per cent strike rate with all eight properties selling under the hammer!
Our team has been achieving these results across all markets and price ranges. From the top end, with character homes in Toorak Gardens, Joslin and Myrtle Bank to renovator delights in Stepney and Marden to key investment opportunities in Norwood, Parkside and Hilton.
Over the last four weeks our ToopVault buyer bank has increased by 300 members with consistently strong numbers of registrations daily, as buyers want to find out about property before the public market.
So will the bubble burst?
No one knows exactly what the future holds but right now our local market is capturing national attention from buyers and investors. With the right sale strategies some fantastic results for sellers are being achieved!