The residential property market is heating up in Spring as fewer homes are offered to the market, spurring demand and fuelling stronger competition amongst home owners and investors alike.
In the nations largest auction capital of Melbourne, the clearance rate lifted to 80.5 per cent from 77.5 per cent as the number of auctions also rose from 632 to 929 over the previous week.
Compared to the same period last year, it’s clearly evident that lower levels of supply have driven market activity and movement, with a significantly lower clearance rate recorded at 69.0 per cent from 1,204 auctions.
The same was evident in Sydney, where the preliminary clearance rate rose to 82.1 per cent from 80.5 per cent, based on a smaller number of auctions; that is, 1,063 auctions scheduled for the week compared to 1,100 last week.
Despite these stronger prices seen in Sydney and Melbourne, the RBA maintains that house prices are under control, as reflected in their latest decision to leave the official cash rate on hold at 1.50%.
CoreLogic spokesman Kevin Brogan expects strong figures to continue towards the end of the year as buyers try to snap up deals before years end;
“This is that time of year when the self-imposed deadlines of ‘let’s be in by Christmas’ comes into play so there will be a section of the buying community who have got an eye on that as a sort of finishing line.”
With these conditions in play, we advise our clients to be careful in their consideration of available stock and to be weary of getting caught up in ‘the heat of the moment’.
Whilst there are always deals to be made, it pays to invest and purchase strategically and diligently, and to always seek out the best possible advice available.
It’s always prudent to put as much of your emotions to the side as possible and to purchase with your head over your heart – easier said than done, we know! But the long-term benefit of doing so is significant, and your bank account will thank you for it later.
Putting these simple principles into action can prove difficult for many investors, as Riveren Director Sophorn En points out;
“Apart from all the research and due diligence we do on selecting our properties, one of the biggest benefits to our clients is the ability to provide independent and objective advice. We act purely on the facts with their best interests in mind, without any emotional prejudice. The difference that can make is enormous.”
If you’re interested in learning more about how we can help you, you can head over to one of our previous posts where we talk about just some of the benefits of using a buyers advocate.
For any other questions regarding property or investment options, feel free to speak to one of our property investment professionals today.
source: afr.com
