Market Update – May 2016

Vote 1 for Property!!

With the federal election looming on July 2nd home owners and buyers seem to be taking this into their buying and selling decision.

Whilst the result of this election will impact on almost every Australian in some way, virtually overnight, the influence on the price of property, ordinarily, will not change dramatically.

History has a habit of repeating itself.  We are yet to see a noticeable increase, or decrease, in property prices or number of sales immediately before or even after an election.

Many home owners are saying they would like to wait and list their home for sale after the election.  This could be counterproductive as currently there is very little stock on the market.  Low stock numbers and competition, no matter what you are selling – houses, cabbages, or apples – normally puts pressure on the buyers and you will see an increase in prices.  Right now, with low stock numbers, it is ripe for owners to capitalise on the high demand.

The Melbourne Cup may stop the nation for a few moments but an election does not stop people from moving towns, moving jobs, upsizing or downsizing.  Real estate transactions continue to take place.

Locally, the market is still experiencing higher than average selling prices and lower than normal days on market.  Whilst these market conditions continue and low interest rates are still being offered by the banks, the time to sell is now.  All indicators are telling us we are at the top of a real estate cycle.

An example of pressure on limited supply in our local market recently resulted in 12  inspections of a property on the first day to market with 5 offers to purchase.  The final offer accepted by the owner was more than $20,000 above the asking price.

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