26 Jul July 2019 Property Market Update
Steve Day July 2019 Property Market Update- Video transcript:
Well is that it? Have we finally seen the bottom for prices with the recent property price pull back that we’ve seen over the last 6 to 12 months, have we finally hit the bottom? Steve Day here, luxury property agent.
Well the banks have just dropped interest rates to historic low levels, and at the same time they’ve relaxed lending criterias to make it easier for buyers to access money their encouraging buyers back into the market, their making it easier for them to get money, they want to give them more money. And that normally translates into buyers wanting to spend the money.
Now auction clearance rates last weekend were back in the levels that we’ve seen in the peak of the market 12, 18 months ago. In the last couple of weeks, we’ve seen increase in buyer activity, the enquiries, the inspections at open homes, buyers bidding at auction all increasing. So you know, what the banks have done is they’ve really given buyers a reason to jump back in, and they’re giving confidence, which is great to see, leading into the Spring property market.
Now the last 6 to 12 months with this pullback in prices, we’ve seen very low stock levels. Supply and demand is what normally drives prices. An increase in supply often puts pressure on prices to stall or come back. Whereas what we’ve seen, is we’ve seen prices come back on low stock levels, which is very usual.
I’m not sure how things will pan out heading into Spring if we see a traditional increase of stock in the market. We’re going to have to just wait and see. Fingers crossed with what the banks have done making it easy for people to get money, it’s going to give confidence for people moving into Spring and hopefully, we’ll see a kick start in the market and the prices found there bottom, fingers crossed they start to pan sideways and we start to see a little bit of an increase.
Locally, median house prices off their peak have come back anywhere between 15 and 20%. We’ve seen Cronulla down roughly, for houses, roughly 15% from their peaks a couple of years ago. Burraneer, South Caringbah, Woolooware, they’re all down around 20% from their peaks. Buyers are starting to see some opportunity and I think that’s what’s allowing for the market to start moving sideways and even hopefully start to trend upwards again, is the fact there is a bit more competition with the buyers now, they’re seeing an opportunity and they’re wanting to commit, they’re wanting to buy property. So fingers crossed this Spring, we’re going to see some good activity, and we’re going to see a really good market.
The days on market, the time in which it takes for a property to sell, 12 – 18 months ago, we were tracking anywhere between 25 – 30 days of average time it was taking for homes locally to sell. That’s now blown out, at least doubled here in Cronulla, just over 50 days, Caringbah South, Woolooware all similar. Burraneer is up to 84 days. So it’s taking longer for homes to sell. So if it is, we’re heading into Spring and you’re wanting to sell your home, it’s likely you’re going to have more competition in the market from other home sellers than what we’re seeing currently today. So that’s something to consider. You’re thinking of selling maybe to get a headstart.
But if you are preparing to go to market, come this Spring selling season. You’re going to have to make sure that your property stands out from the crowd. There’s not that many buyers in the market, if there becomes more stock to sell, the Sales strategy becomes paramount. The marketing campaign is so important. You want to make sure the eyeballs are on your property, and not on the competitors, being the other homes that are currently for sale. You want to bring the buyers to your property, and you want them to compete for your home, so you get the best price you possibly can within the shortest period of time. So when you’re considering an agent, you’ve really got to make sure they’re on point when it comes to strategy and their suggested marketing campaign.
Now I’m more than happy to discuss those things with you any time, no obligation. Please feel free to get in touch any time. Thanks again, Steve Day here, looking forward to talking to you soon.
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