Hill & Viteri Property Market Round Up for the October to December Quarter of 2021.
Welcome to the Hill & Viteri Property Market Round Up for the October to December Quarter of 2021.
Market Direction
It’s safe to say the flood gates opened this quarter after restrictions were eased. Sellers who had been waiting for open homes and auctions to return flooded the market with stock coming on at three to four times the normal rate in October & November.
We noticed a significant change in the market with the reduced number of buyers now being presented with more choice which further balanced out conditions between buyers and sellers.
Moreover, to this were changes to lending after the regulator APRA increased the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
APRA Chair Wayne Byres said
“In taking action, APRA is focused on ensuring the financial system remains safe, and that banks are lending to borrowers who can afford the level of debt they are taking on – both today and into the future.”
Buyer Activity
What we saw in the house sector was property was still selling and the rate of absorption was still high. However, we also saw resistance from buyers to pay 10% plus more than the last sale. By Christmas, although stock levels had come back, prices were in some cases less than the last sale.
Michael Virly from MVP Auctions reported a clearance rate for the quarter of 76%. So, this was down from 86% the previous quarter. He noted that the number of properties selling prior had increased which flattered the clearance rate. Selling prior is often a sign of the lack of competition with sellers not wanting to take a chance at auction. Moreover, Michael reported on average 4.2 buyers were registered for auction in this period. This was down from 7.4 the previous quarter.
A great result achieved prior to auction by Derin Hill was the sale of 52 Grays Point Road, Grays Point which was sold for $2,135,000. Whilst the property had a magnificent view the incomplete building works and steep access made this a challenging sale in shifting conditions.
In the strata market we continued to see good activity with first home buyers and investors continuing to return. Notably some fantastic prices in the three bedroom townhouse market.
Sean Donovan selling 39/81 Bath Road, Kirrawee for $955,000.
Derin Hill selling 7/146 Waratah St, Sutherland for $1,140,000
Megan Stevens selling 4/71-75 East Parade, Sutherland for $1,000,000
Buyer Sentiment
Furthermore, Fewer buyers, an increase in stock on market and restrictions on lending and we have a market correction. So, I would say we are currently in a normal, balanced market at present.
Round Up-Rental Market Movements
In regards to the rental market, our Head of Property Management and Partner Leigh Anderson advies ‘Demand continues to be strong with available properties being snapped up quickly. Modern houses and new duplexes are especially popular with rents still on the rise.’
If you would like to know the new value of your property give the team or contact us via the website. You may be surprised just how much prices have moved this year.
So, in regards to the rental market, our Head of Property Management and Partner Leigh Anderson advises ‘Demand continues to be strong with available properties being snapped up quickly. Modern houses and new duplexes are especially popular with rents still on the rise.’
Thank you for taking the time to watch our Quarterly Market Round Up. As always if you have any questions or require real estate assistance please don’t hesitate to contact the team.