MARKET NEWS
Sales Market Review
Thursday, October 01, 2009
September kept the wheels of positive motion turning with both the volume of transactions and the average sale price increasing. The property market over the past 12 months has surged forward in what economists refer to as a V-shaped recovery, however, we can’t recall any market forecaster predicting the type of rebound we have witnessed. Interestingly, in our newsletter this time last year we were reporting interest rates had just been cut for the first time in seven years. Just 16 sales had been transacted in the month with an average sale price of $838,000. In contrast, over the last 30 days we have seen 54 properties transacted with an average sale price of just over $1m and we are all waiting for interest rates to be increased. That represents a 20% improvement in the average sale price and close to a 250% improvement in turnover.
The amount of new property entering the market is still well down from traditional Spring levels however transactions are up as most listed properties are being purchased within days of hitting the market. A typical sale campaign in the current climate will result in heavy buyer enquiry and inspections within the first 10 days, which will then decline rapidly in the third and fourth week. Most of the intensity is now focused on properties up to $1.5m and buyers are still moving swiftly and decisively with offers.
While conditions are strong, we are starting to sense that demand is easing ever so slightly. We have recently seen a number of properties enter the market with overly ambitious pricing fail to attract a single bid at auction. We have also encountered some feedback from buyers suggesting they are happy to sit on the sidelines as they feel the market is over-heated. The next few months will be interesting as there is enough rhetoric from recent Reserve Bank board meetings to suggest that interest rates will be increased in the short term. Additionally, the First Home Owners Boost scheme halved at the end of September which should start to see demand for entry level properties ease.
For the time being though it is amazing to review how the market can shift in just 12 months. Is this the start of a prolonged period of recovery for the NSW property market or simply a spike? What we do know is that if you were one of the brave few to secure a property at this time last year, your timing was perfect. We also know now that the Inner West is a very resilient marketplace with high demand and, in our view, great opportunity for continued growth.
- Sales Market Review
- Sales Market Review
- Sales Market Review
- Sales Market Review
- Sales Market Review
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