Market Comment – Monday May 11th 2009

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This weekend saw what has become the typical clearance rate: 76% on around 440 homes that were set for auction. Of course, as we have been talking about for the last three months, there was again a very healthy private sale volume for the week. There were only 14 occurrences last year where the REIV reported that total sales exceeded 1000 properties in a week. We have already had 9 occurrences this year.

Whilst we wait to see what will happen with tomorrow’s federal budget, the market continued to move full steam ahead. Of the auctions we attended on Saturday, all sold under the hammer after spirited multiple bidding well in excess of the reserves. The auctions covered the ranges from $500k to well over $1M and all were hotly contested. Even the market over $2M seems to be picking up interest from many more people than most commentators believed would be the case.

We can see from the figures that are currently being reported that Private Sale negotiation is quickly becoming the most common method of sale, either because the property has passed in or the agents have decided that it is the preferred method of sale. Either way, anyone wanting to purchase a home over the next six months had better get some good advice or be ready to take on some very professional negotiators.

If you are thinking of purchasing or have already started looking please feel free to call and have a chat.

Ian James

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.

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