“For our vendors this is actually a very positive climate to be selling as the competition for property is being concentrated on only a few properties as opposed to being spread across many.”
Current Market Climate
The warmer weather has arrived and there is certainly a “spring” in our vendors’ steps as we review some of the outstanding sales results across the property market. The results we are seeing, along with strong auction clearance rates, are a result of a shortfall in new properties entering the market compared to what we would normally see in our traditional Spring selling season.
Locally we saw properties moving steadily through to the end of the June quarter, however the anticipated influx of properties at the beginning of September was somewhat lacking. For our vendors this is actually a very positive climate to be selling as the competition for property is being concentrated on only a few properties as opposed to being spread across many.
Purchasers in the market are very anxious to secure a property prior to the end of the calendar year which is making for a perfect competitive storm come most of our auction days and, in some instances, seeing eager parties pulling out all stops to secure properties before they officially hit the market or get to auction.
Given the long term view that most purchasers are taking, whether they pay a little more to enter the market now, will be outweighed by future capital growth.
We have seen some volatility in the stock market in the past few months and as a result we are getting increased interest from the DIY Superannuation sector who are opting to invest their future in bricks and mortar.
We can report WWRE auction campaign days on market averages at 33 days and auction day clearance at around 81% (for past 24 months across 100+ auctions by our office).
Until next time,