A warmer than average end to winter, lower interest rates, affordable housing prices and expiring government concessions, have combined to create ideal conditions for motivated buyers leading into the traditional Spring market.
Spring is the season when we see more properties on the market, as well as an increase in open house attendances. However, in NSW, our internal research reveals that listings are down by 19% compared to July/August 2011, although it does appear that more buyers are pounding the pavement earlier than expected this year. At the same time, our research reveals auction clearance rates are 18% stronger than the same period last year.
More buyers and fewer homes for sale means astute vendors who list before September could find themselves entertaining multiple offers for their property.
Market moving upwards
Guy Lorello, Principal of Raine & Horne Burwood, says his office’s auction clearance rate is sitting at a very healthy level for August, and well above the Sydney average clearance rate of 60%, as a result of improved buyer interest and a shortage of sales stock.
“We currently don’t have enough stock on the market to satisfy the growing buyer demand.”
Likewise in Sydney’s south, there are also signs that the local real estate market is set for a healthy Spring result.
“The market seems to be moving upwards as dwelling prices have been firming up over the past couple of months,” confirms Anthony Bouteris, Principal of Raine & Horne Miranda.
“In Miranda, where the current median price for a three bedroom house is edging above $700,000, the most motivated purchasers at the moment are upgraders looking to take advantage of the low interest rates and affordable housing before property prices increase any further,” adds Mr Bouteris.
First home buyers snap into gear
In the state’s Riverina, Grant Harris, Principal of Raine & Horne Wagga Wagga, reports that first home buyers are driving up property prices in the sub-$300,000 price range in a scramble to beat the demise of the First Home Owners Grant for established homes at the end of September.
“First home buyers are clamouring to snatch the $7,000 before it expires, as the grant represents a huge incentive if you’re buying a home for $300,000 or less.
“Currently, we’ve seen multiple first home buyers competing for the same property,” says Mr Harris, who recently sold 11 Wooden Street, Turvey Park prior to auction for $275,000.
“This ‘renovator’s special’ is built on a big block in a good area and proved popular with entry level buyers.”
Mr Harris is also convinced that the sky won’t fall in for the first home buyer market in Wagga after 1 October, 2012.
“Once the grant expires, we expect the first home buyer competition to shift to home and land packages because that’s where the new incentives are,” says Mr Harris, who is confident the 2012 Spring market will deliver robust results for Wagga Wagga homeowners.