Hill & Viteri Property – Market Round Up July 2019
Have we seen the bottom of the market this quarter? Looking back over my 16 years in industry, I don’t think you ever really know until 6 months after the top or the bottom of any real estate market.
What I can tell you though, is that leading in to the federal election buyers were very nervous. Proposed changes to taxation in relation to negative gearing and capital gains were on their mind. It appeared that we were set for a Labor government, so much so that a prominent betting agency paid out early on a Labor win. However, the May 18 vote resulted in a Coalition government for another term.
To those of us on the front lines, we immediately noticed a spike in buyer activity with attendance at open homes rising sharply post election. The following weeks continued on the same trend and we saw buyers snapping up the available property with several properties on our books having multiple offer scenarios driving prices up $100,000 to $200,000 from the interest level. Buyer confidence returned to the market.
Now some of the stats that will come out of this quarter will appear inconsistent. Our reporting shows that stock on market is down again, approx 33% down from the December Quarter of 2018. This is for the second consecutive quarter. However, this quarter shows that the days on market stat has increased substantially. What this tells me, is that the stock that was not selling, that had been sitting on market for an extended period of time, has now sold.
So, increased buyer activity + less property for sale = upward pressure on price. Now add to this some loosening on policy from APRA and two consecutive interest rate cuts and we start to see some positive signs in the property market. Add to this some positive reports in the media and we have a recipe for recovery*.
I will add that locally, the signs of improvement have been in the housing segment predominantly. Strata is yet to see the same activity and there are a number of factors for this in my opinion. Most notably the large supply of new development and the affordability of houses in comparison. We had started to see houses sell in the mid $600,000’s to mid $700,000’s in the 2233 area with new two bedroom apartments priced comparably in the Sutherland, Jannali and Engadine. However, this increased activity will likely see the gap open up again between new apartments and entry level houses.
Now if you are planning the purchase of your first home, an investment or your next home it is a good idea to partner with a professional real estate agency to help you along the way. At Hill & Viteri Property we have a combined real estate experience of over 80 years in our team with a number of award-winning agents in the team who are proficient in all stages of the property cycle.
If you are considering selling or leasing your property, we’d welcome the opportunity to meet with you and guide you through the process. Our agents are equipped to provide advice on how to maximise your return and guide you through pre-sale/leasing renovations, property styling as well as assist in the form of buyer advocacy if you are looking to buy as well as sell.
If you are more in the early stages and would just like an appraisal to understand what your property is worth in comparison to what you would like to purchase, the team are happy to help here too and can guide you through the change over costs. Simply fill out our contact form here and one of our agents will be in contact with you later or call our office on 9545 2220.
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*Dr Andrew Wilson’s ‘Wilson Curve’ explains the stages of the property cycle as Correction, Contraction, Recovery & Expansion. Diagram below.
If you would rather watch the video than read Sebastian Viteri our founder & Principal will talk you through it in two minutes.