MONTHLY MARKET WRAP – MARCH 2019

March was an interesting month for the property market. Many expected stock levels would increase as sellers looked to take advantage of the warmer weather and get in ahead of April’s school holiday and Easter break. Surprisingly, levels remained relatively low through March, which kept buyer demand at a reasonable level. This trend of lower property turnover has been increasing over the past two years and data suggests property sold and settled is nearing the lowest point recorded in two decades. What does this mean for sellers? Buyer interest has been sustained at a reasonable level and, if properties are marketed with a realistic price guide, they should expect to attract plenty of interest and offers within the first few weeks of the campaign.

 

This year we’ve seen far higher attendances across our open homes and increased interest around movement in property prices. CoreLogic data suggests that prices are continuing to fall at around 1% per month but this data is a broad overview and doesn’t factor in the micro-conditions within each suburb. In our regions, we’ve seen the market split into three categories with buyers’ first preference being for quality blue-chip property. This of course makes total sense as buyers focus on key elements such as the ideal layout, a sought-after street, the right aspect and a reasonable price. Secondly, if buyers can’t match the first-grade criteria, we’re seeing interest on properties that offer a few of the key factors such as the right location but perhaps the floor plan requires improvement. In such cases, buyers focus more on value in the knowledge they will need to spend to renovate. Finally, there are the properties that fall into the third-level category. These are homes which may not have any of the ideal buying criteria and, unless they are considered to be extremely good value, it’s very difficult to attract interest or offers.

 

Throughout March, while newer listings were lower, the quality of property coming online was actually very good. The majority of our listings fell in the preferred first two categories for buyers and, as a result, almost all of our clients received offers with several properties excelling at auction or selling prior to a standout buyer. With more property selling in 2019, we’ve seen an improvement across the board with buyers better equipped to navigate the new lending environment and sellers more knowledgeable about property values. This is not to say the market is back in positive territory, rather it’s a wider acceptance from the market at large that conditions have changed and it’s a new economic environment.

Posted in Uncategorized on 1st April, 2019