If you read the “Gloom and Doom” printed in the media yesterday, then you may not have noticed that 1157 properties sold last week. This is the best result since April this year. Real Estate Agents are beginning to understand that Auctions are only good advertising for their agencies, not for the vendors’ property price.
There are more properties selling now than there were one month, three months and even six months ago. Everyone who wants to purchase a property in the next twelve months needs to prepare for some vigorous negotiation. Most good Real Estate agents are very smart. They will change their methods and move away from auctions and back to private treaty negotiations.
Purchasers who still want to buy good property at a good price will need to move quickly. Early through next year, the property prices will cease to be reported with poor clearance rates. The Real Estate industry will simply not give the media “gloom and doom” to write about. In fact the figures coming out from the REIV will improve steadily, regardless of what actually happens in the market place. This will be due to the fact that the clearance rate percentage will lose its appeal. More properties will be sold privately and undisclosed, making it even more difficult for the general public to understand what is happening in the market.
This is not such a bad thing from the confidence angle. Good property will serve the majority of people very well as an investment. It does not have the “dot com” or mining share price surges, but it also doesn’t have their downturns. Unlike some of the largest companies and banks in the world, I cannot recall a well situated property in Melbourne every losing 100% of its value. I cannot even recall any time where a well located property even lost 50% of its true value.
Even as the world economy takes a nose dive throughout next year, Australia, and in particular, Melbourne’s property market, is poised for strong growth over the next ten years. For those of you, who have enough headaches from work and home; think about a long term, “set and forget” property investment, upgrading the family home, or buying that first dream house.
We are happy to have a chat anytime.
Ian James