Thursday 14 Jul 2016
Perhaps an important lesson for the property market that we should take out of the recent election is the importance of setting the right expectations and the dangers of making wrong assumptions. So with a Government now in place let’s set some things straight.
First things first. The market remains strong but not stupid crazy. We continue to see good auction clearance rates. There are also continuing headlines of properties selling for significantly above reserve but it is important to realise they are headlines because they are the exception rather than the rule.
Don’t get me wrong. Good properties are securing very good prices at the moment especially because supply continues to be very tight, but it is dangerous for vendors to expect every property to set a new price record.
And I think the next couple of months will be very interesting.
Obviously there is the assumption and anticipation that Spring will see listings increase as tradition has dictated. I certainly hope so.
The opportunities we have seen for vendors over the last several months demonstrate the appetite for residential property remains, and I believe more supply will fuel more demand which would make for a very strong finish to what has already been a year significantly above expectations.
And whilst I’m wary to set the right expectations I do believe the lure of Spring will see more properties come onto the market. It always does and with the election done and dusted I think those vendors who have proved stubbornly resistant to the realities of the strong market throughout Winter will be more prepared to overcome their nerves in Spring.
So if you think about it, that also means the opportunity exists right now for vendors to get in early and get the jump on the Spring surge whilst taking advantage of the existing demand.