Many Real Estate offices in Melbourne will start to see the mass staff exodus for warmer climates over the next 4 – 6 weeks. Stock levels have reached their lowest levels for the year and will stay at this point for about 6 – 8 weeks until spring brings out the vendors who want to move over the Christmas break.
There are far less sellers, but there are less buyers as well. Should I buy? Or should I wait? The simple answer is; if the right property is available and it is offered at the right price – then buy it! But be warned; there are many properties on the market at the moment with ridiculous price tags on them. I have seen properties in some suburbs where comparables have sold 6 – 12 weeks ago for 10 – 20% less. Buyers beware!
If you are buying property at the moment and not getting professional advice then assume you will most likely pay substantially more for your new property than what others will be able to. You should also be very aware that any bank pre approvals come with a condition that the loan is subject to valuation by the bank. And the Valuers do not have to value the property at contract price unless that is what the comparable data tells them.
During winter months when agencies tend to have a few less staff and Saturday afternoons tend to be colder and wetter, a lot more deals occur prior to auction date. There are actually a lot more properties on the market than those advertised as well. Off market properties – many of those that will be sold through spring, are already on some selling agent’s radar. Asking the right questions of the right agents may get you some further information on properties that are not openly available.
With clearance rates in the high 70’s and numbers of sales each week still exceeding 800 properties in Melbourne, we will still see price growth well into the latter half of the year. Not the Greek Debt Crisis, the Negative Gearing debate or foreign nationals having to pay extra tax, will stop the onward march of property prices in Melbourne.
Population statistics are showing that Melbourne will be the largest capital city in Australia by the middle of the century. And this, I believe, will only accelerate, as more and more people will immigrate to the most liveable country on the planet. And the majority will want to live in the most liveable city in the world. You do not have a bubble if the simple basic facts are there are more people who wish to buy in Melbourne than there are that wish to sell.
Anyone looking got buy property in Melbourne should be using an qualified licensed buyer’s advocate to make sure they buy the best possible property for the best possible price. Call our office for a no obligation meeting.
Ian James
Director
JPP Buyer Advocates