We’re in the thick of a strong Spring selling season – not on par with the boom conditions of 2015, but still with steady price growth and a string of solid results recorded by the Noel Jones Group across Boroondara, Whitehorse, Manningham and Maroondah so far this Spring.
School holidays and the AFL Grand Final briefly interrupted the property market, with total listings down 13.6% in September compared to last year. Despite the reduced number of homes on the market, we’re still seeing consistently high clearance rates above 70% and strong results in the Eastern Suburbs, with the possibility of a late-spring rush on the cards in November.
Meanwhile, investor lending in Victoria surged to over $3 billion in August, up 5.3% on the previous year. It accounted for nearly half of residential lending in the state, the highest recorded share since July 2015. Factors like increasing prices, good yields and tight vacancy rates should continue to drive investor demand into 2017.
The affordability debate continues
Housing affordability remains a big talking point in the media. While first home buyers in particular are taking longer to get a foothold in the market, data from the REIV reveals that there is opportunity out there for smart buyers seeking affordable homes. For those who don’t want to live in an apartment, smaller two-bedroom homes are the key to buying in Melbourne’s most desirable suburbs.
According to Geoff White, CEO of the Real Estate Institute of Victoria, these kinds of houses offer an affordable option in sought-after locations. Two-bedroom homes are experiencing solid price growth in many of these suburbs, offering value and a yard at a price point significantly below the suburb’s median, White explains.
New rules provide transparency
Recent changes to price quoting will be of interest to both buyers and sellers. They include:
A property’s estimated selling price can be revised if an agent receives a written offer higher than the current estimated or advertised price;
A property’s selling price must be provided as a single price or a price range – no offers over or price plus advertising;
New buyer fact sheets include recent comparable sales, suburb median prices and the agent’s estimate selling price.
The aim of these changes is to bring more transparency and consistency to the sales process for all stakeholders.
Looking forward to 2017
With only a few weekends left in Spring, those keen to sell before Christmas need to act fast to prepare their property for a successful sale. Contrary to popular belief, the market doesn’t come to a complete standstill over the festive season, and savvy sellers who’ve done their research and enlisted the assistance of a top agent can benefit from the lack of competing properties on the market late in the year.
If you’re thinking of selling in the next few months, it’s worth giving us a call to discuss your options. There are many simple updates that property owners can undertake to increase their home’s appeal to buyers, and the more prepared you are, the better off you’ll be.