Exerpt from our July Newsletter: Mark’s Market Update
Answering my most asked question – how do I see the market at the moment?
In short, watching the selling activity I have a sense that our market has plateaued for the moment mainly due to a lack of confidence and uncertainty in the mind of the buyer. Having now seen 2 interest rate reductions I get the feeling that people are being cautiously optimistic as any benefits in rate reduction are being taken up by other cost of living expenses.
No doubt there will be a few more reductions to come this year which will increase buyer confidence. The selling market is very price sensitive, and we are seeing this in some (not all) cases as days on market are drawing out. Vendors that are accepting of this will see a quicker result. It has always been the case if you are buying and selling in the same market, you will be fine. The entry level of our market is short in stock, however buyers looking in the upper end of the market at the $1.5 – $2 million plus have quite a bit of choice at the moment.
We have seen some significant adjustments in some prices in order to bring about a sale. We have also seen some sellers take their properties off the market for the moment with the view to bring the property back when there is more confidence.
And of course, some sellers will wait for spring to bring their property to the market with all the other sellers – which will potentially be opportunistic for buyers. We shall see what pans out.
People always ask me “when is the best time to sell?” and the answer is “when you have the least amount of competition.”
Our rental market is still very tight as we have seen a large number of landlords selling their investment due the government policies around having an investment property in Victoria. I do live in hope that eventually governments will realise that they are running out of ‘other people’s money.’ Their policies have caused the tightening of supply and the rise in rents. Laws of supply and demand will always apply.
As always, don’t hesitate to call myself or the team to discuss what ever your needs may be.
Regards,
Mark Gunther
0448 623 030