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Buyer optimism signals opportunity for home sellers

Buying

Selling


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The Miles team is seeing plenty of positive signs in the residential property market, with auction clearance rates lifting considerably in the wake of the Federal election and strong sales results for us locally.

While the lower tier of the market (properties priced at $750,000 and below) held strong during the past 18 months, buyer confidence is gradually working its way up the property value ladder.

We are finding that buyers in the Banyule market are now prepared to make a decision rather than waiting. This can largely be attributed to the combination of a few factors:

  1. Further cuts by the Reserve Bank of Australia to already-low interest rates
  2. Changes to the assessment rate by APRA - the banking industry's regulator – allowing buyers to borrow more money based on an ability to make repayments at only 2.5% above the mortgage rate
  3. Post-Federal election stability and general positive economic sentiment

The challenge for us now is to ensure we have the number, and choice, of properties to meet buyer interest.

In the April – June quarter, the Miles team sold 129 properties in Ivanhoe and Rosanna, a decisive increase on any quarter over the past 18 months. It is worth noting that by adapting to the market and using alternative methods such as EOI's, private sales on off-market campaigns, has helped contribute to these excellent results.

In June, metropolitan Melbourne achieved its highest clearance rate in more than a year, at 68.2%. That momentum continued through July, with the REIV reporting weekly clearance rates in the 70s, a big improvement on the mid-40s we were seeing earlier this year.  The Miles team takes pride in consistently achieving above the average Melbourne results. In the middle two weekends in July we delivered a 100% clearance rate, helping our clients achieve their property goals.

This should not be interpreted as a dramatic uplift in market conditions, but rather a solid step towards a more balanced market, which we gladly welcome.

Perhaps the most obvious sign underpinning this latest market shift is a significant increase in buyer activity. Compared to the end of last year, open for inspection attendance numbers are up by about 40% across houses and units and quality properties are selling well. In some cases over the past month, we have seen as many as five bidders competing at auction. Another example of active buyer participation was our recent auction of a property in Viewbank which received 79 bids.

With fewer properties hitting the market – which is not unusual in winter – there is an excellent opportunity for vendors as we head into spring. If you are thinking of selling in the near future, it may pay to have your home professionally appraised, and a sales campaign prepared, before the spring rush.

A balanced market is also a good time to consider a home upgrade – as the current conditions present a more predictable environment in which to sell and buy. For budgeting purposes, on average, property owners tend to upgrade by about 50 per cent (for example, selling at $1 million and then buying a new home for about $1.5 million).

Whatever your property goals, the team at Miles Real Estate would love to assist you. For those looking to sell, there certainly is a large buyer audience waiting with anticipation for the right opportunity.

To gain a clear understanding of the value of your property, please contact the Miles residential sales team today for an obligation-free appraisal. Click here to request an appraisal:

REQUEST AN APPRAISAL
 


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