Quarterly Property Market Update – April 2013

Based on The Age Sunday Results*

Upward Momentum In 2013

In keeping with expectations, the property market has commenced 2013 with buyers’ sentiment in a more positive frame of mind. This improvement appears to be across the price ranges … and the Melbourne area. Auction success rates have bounced from the early to mid 60’s per cent range last year, to around 70 percent, consistently this year. That shift is modest, but nonetheless has a noticeable impact.

Fortunately, results at auctions are not forgone conclusions. We have participated in auctions where bidding was brisk and reserves easily surpassed, whilst others – still quality properties, have meandered to what might just be called a “satisfactory” outcome for the vendor. And of course there are still pass-ins where no bidders attended or the bidding was simply not good enough to tempt the seller.

Our expectations are not for a runaway market in 2013, but rather a market “drifting” higher. But even a slight lift over twelve months of 5% sees a property whose value is around $600,000, rise by $30,000. These price movements occur in a subtle fashion … barely perceptible at the time.

It’s the oldest question in the book “When is the right time to buy?” Some experts make a fortune trying to sell the answer to this question… (“Pin The Tail On The Donkey” has its fans too…) But it can pay sometimes not to try too hard to minutely analyse markets; but rather – and if it feels right for you at the time, stick to an equally old principle that “buying real estate is a long term proposition”. Few have got it wrong by having this approach.

Happy House Hunting In 2013 – We Look Forward To Making Your Success Even Better

Bruce Renowden