While spring makes an ideal time to sell property, between a positive shift in the market, price increases in many areas, increased buyer numbers and higher auction clearance rates, this spring looks to be very promising.
Spring traditionally injects renewed vigour into the housing market. While warmer weather, blossoming gardens and a greater sense of optimism and enthusiasm increase buyer activity, the 2019 spring market arrives on the back of consecutive interest rate drops that have brought the cash rate to an historic 0.75% low.
While spring often has buyers out in droves, its effects on pricing can be extraordinary, with competition in any market only driving prices one way. After a slower start to the year with some buyers holding off, more recent developments, including the relaxing of stringent lending guidelines, have brought more certainty to the market.
Auctioneer and Director of the Balwyn office, David Fileccia, explains that greater confidence and the resurgence of buyers is now driving more competition in the marketplace. “APRA’s changes to lending criteria have freed up more buyers to compete with confidence at auction, which is translating to higher prices and stronger auction clearance rates.
“At recent auctions,” he adds, “we’ve seen hands come up as soon the bidding opens, and no need to place a vendor’s bid throughout, which a strong sign of confidence and buyers wanting to engage in the buying and bidding process.”
It’s also worth noting that while Melbourne’s clearance rate, according to the REIV, increased to 79% in recent weeks, the Noel Jones team has been frequently out-performing the wider average, while also achieving a 100% clearance rate on numerous occasions across several months.
Amidst promising market conditions, spring weather also gives imminent vendors the opportunity to beautify their gardens, brighten and lighten their interiors, and attract even more potential buyers – many of whom need to be settled by Christmas so they can confidently swing into the new year!