MONTHLY MARKET WRAP – OCTOBER 2018

  • November 1, 2018

October continued to see a property market in fluctuation mode with school holidays and inclement weather playing a part in further disrupting a landscape that already had its fair share of challenges. Despite the gloom, we continued to see a healthy mix of properties trade as buyers pushed hard for a better deal and sellers had to manoeuvre their asking price around increasing levels of supply. The auction clearance rate parked itself at 50% with many regions recording outcomes below this level, continuing to reflect a selling environment with fewer buyers willing to act. We also recorded a slight decline in the number of buyers attending open homes with the average sitting at 10 for the month, however with school holidays over two weeks of October this was not unexpected. While the current pool of buyers may not be large, there is certainly a willingness and intent to secure a property prior to Christmas which has seen some positive offers and sales for various properties.

 

It would be fair to say there are still a number of properties coming onto the market at a price point that is ambitious and perhaps the price declines which have occurred may be a little sharper than many want to acknowledge. However, the same could be said for many buyers who are using this market as an opportunity to put forward ridiculously low offers in the hope they will be accepted. We are certainly not at that point in our area. This is a true property market where anything not honest will be quickly found out and dismissed. For example, if a listed asking price is too high it will simply be avoided by the market and that accounts for everything from the very best blue chip real estate through to an entry point apartment. Likewise, if a buyer is of the mindset that this is a climate where any offer can be thrown in, these too will be quickly dismissed.

 

As these market conditions continue to evolve, we are adjusting selling strategies and we’ve seen an increase in properties being listed for private treaty sale as opposed to auction. Campaign lengths are extending and price guides are being adjusted throughout the course of the campaign. As we change up strategies we are seeing varying levels of success but the common thread really does come back to price right now. There are active buyers who would like to purchase but are concerned about the direction of property prices over the next 12 months, which one can understand given the waves of media articles and data suggesting this property downturn still has some way to go. Despite these conditions, sensible people appreciate that the market is a cycle and a suitable property in a good location at the right price will always make sense to pursue and just ride through the property clock. We all still have aspirations to move for many different reasons and it’s a matter of adjusting to the market conditions at hand and working towards the best outcome for your current circumstances.

 

October’s signature performers

 

 

 

 

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