Our current market can be described in one word – ‘buoyant’. We are pleased to report that there is plenty of action and activity, with more overall interest than was reported just three months ago.
Without question, it is a sellers’ market. Some buyers are a little frustrated with the restricted supply, but new listings always generate plenty of interest. With stock a little tight, we are seeing a marginal creep upwards in price as demand outstrips supply.
So, what’s selling? The answer is pretty much everything. As always, well presented homes with nothing more to do are getting snapped up, but there is also interest in the fixer-upper.
Time on the market has reduced from the last newsletter. The time from first listing to acceptance of offer is around three weeks on average, and sometimes less. Typically, the balance of this time gets absorbed in loan paperwork and legalities. And some sellers are opting for a delayed settlement to give themselves time to secure a new property in the same market.
We have previously reported about buyers having difficulty securing finance in the wake of the banking royal commission, and the associated waiting times and paperwork required. In good news for buyers, this financial gridlock situation is now easing a little, and buyers are capitalising.
October brought in another interest rate cut, putting us in uncharted territory with a current interest rate of 0.75 per cent. This rate is unprecedented and with a greater ability to pay funds, it stimulates action and gives buyers access to properties which in other markets they would not be able to afford.
While the interest rate changes are helping to resolve market uncertainty, we are now seeing a situation where people wish to sell and then buy in the same market, but they don’t want to sell until they buy. Being tentative about not selling your own home until you have secured a new property is entirely reasonable, but it does create a market bottle neck where everything is on hold until your offer on your dream new home is accepted, or until you find the perfect replacement property. It is great when we see this chain reaction resolve, but in the interim it does create tension for everyone caught in the funnel. Twelve months ago when prices were lower, people were holding out on selling. But now that prices are increasing, people are keen to sell but are then holding out until they find something to buy. It is a conundrum.