It is now absolutely obvious to anyone looking at even basic statistical analysis that the market is turning. But many don’t realise just how fast. With clearance rates now in the high 70 percentile and private sale properties turning over faster than ever, we are about to see a massive turnaround in price movement in the mid to upper price range in Melbourne.
I predicted at the start of the year that the market had reached bottom but that it would not be seen as a rising market until the first quarter of next year. I must admit I was a little out on my own in February and as of now, I have to admit I was wrong. I made the assumption that we would have a reasonably buoyant Spring and this data would translate into quarterly figures showing a healthy rise in median price and overall clearance rates. The rise and the media talking about it has already begun and will accelerate throughout the rest of this year.
The current clearance rates of high 70 percentile and fast turnaround times on private sale properties. The massive increase in numbers of prospective buyers through open for inspections, and the dramatic lack of stock means we will see an absolute bumper Spring. The double interest rate drop, the backtracking of APRA with debt service calculations, the landslide victory against “negative gearing and higher taxes for home buyers” and the surety of bricks and mortar investments have brought people flooding back to the property market earlier than expected.
Spring will be absolutely fast and furious and understanding where the prices will end up before auctions will become incredibly difficult for those who are simply looking at one or two properties. Research and negotiation ability will be the key attributes to buying well this spring.
Anyone interested in buying or selling through the next three months is welcome to call for a no obligation chat.
Ian James
Director
JPP Buyer Advocates