Based on Reported Auction Results*
Market Sizzles Into Autumn On High Market Turnover
It’s a familiar chorus line: market strength continues…
What is noteworthy for the period in review is the high volume of auction offerings week by week. There are repeated weekends where numbers of properties submitted for auction exceed 1000; and by a comfortable margin. Such numbers when considering success rates, are likely telling us two things. Firstly, that many sellers generally feel now is a good time to sell because they consider the market may have run far enough and is due for a breather. Continuing, if this is a dominant reason held by owners, then there is some logic that a higher proportion than usual of investors compared to owner occupiers, could also be adding to the selling, but not re-buying. This might account for very high numbers being offered.
Of equal interest is the extremely high success rates however. Eighty per cent is very high and the market is very buoyant. To manage 82% repeatedly is full speed ahead. This figure is rarely bettered and given the large number of properties being offered tells us the second thing. The market does not appear to be running out of steam. Sellers are either re-buying after they sell, and/or first home buyers are still trying to get into the market (albeit often with the help of their parents). Buyers continue to have a large appetite for properties in general and three to four bidders is the order of the day at many, if not most auctions.
Still at the top of the list are homes on land. Future development prospects are a strong driver along with the simple wish to have a back yard. New developments of flats are at the other end of the scale continually expanding supply and competing with each other for the buyer’s dollar. For investor buyers not motivated by their own lifestyle preferences, we are recommending house on land where possible, or units with courtyards as second choice, for the best capital growth. Overlaid with these property style considerations, is the decision to buy in an area that is best and affordable to you. Marrying up the best combination of the different choices is one aspect of how we help clients.
Taking longer to buy does not mean a buyer has bought better. But it may mean they have paid more. Worth considering.