IT’S no surprise that the heat has come out of the property market – it had to sooner or later.
But while conditions are not quite as strong as what we saw last year, with some uncertainties around elections, interest rates and even global issues, there is still strong demand and buyer competition for A-grade properties, which is the only type of property we buy for our clients.
The market is patchy, and as more stock comes to the market, owners of B and C-grade properties are finding it harder to secure a sale, and are being forced to drop their asking prices.
Domain data has found that almost one in 10 properties on the market in Melbourne offered discounts in February, but around one in 15 increased their price as buyers competed for the best properties.
Either way the market has become more balanced between buyers and sellers, which is giving buyers more choice and time to think about what they want to buy, rather than being forced to act quickly.
On the flipside the rental market is heating up – or overheating – with rental listings dropping dramatically. In Melbourne new rental listings fell by 11 per cent in February, with total rental listings falling by 28.2 per cent, according to PropTrack figures. The vacancy rate for the city is now 2.1 per cent, and is expected to fall further as demand grows with international borders open. According to CoreLogic, rents are now outpacing property price growth, with Melbourne rents rising by 4.3 per cent in February, but prices remaining stable.
If you need expert advice or help – whether you’re buying or selling - Property Mavens is here to guide you through the property market. To talk to a qualified and highly-regarded buyers’ agent or sellers’ advocate, contact us today.
What does the rise in listings mean for buyers?
The heat is clearly coming out of the property market nationally, with price growth starting to slow. According to CoreLogic, nationally property prices rose by just 0.6% over February.
We are now seeing an accompanying rise in listings, with a PropTrack report from realestate.com.au showing a 38.7% increase in month-on-month listing numbers in February in Melbourne. Listings are up 14.6% over the year, being well above the listing numbers seen at the start of 2021. According to the PropTrack data, Thornbury had the biggest jump in listings of 147% compared to the same time last year, followed by Taylors Lakes (127%), Coburg North (120%), Coburg (119%) and Donnybrook (119%).
While a rise in listings can help with providing a more equal playing field for sellers and buyers, which will help to restrain price growth, more choice doesn’t necessarily make it easier for buyers looking for an investment-grade property. Quality properties can be hard to find, and the same buying mistakes can be made regardless of stock levels. When searching for an investment-grade property, buyers should be looking at the fundamentals, including position, aspect, the shape and size of the block, the floorplan, noise and even smells.
The rise in listings has led some to predict that prices will ‘plunge’, but we know this will not be the case due to the underlying fundamentals in Australia’s housing market including demand outweighing supply for housing. Prices have never plunged in Australia. Rather, historically, over the long term, property has increased over the decades. Even some apartments are becoming popular again for first homebuyers and downsizers. In Melbourne, demand is expected to become even stronger with the reopening of borders and the return of students.
An experienced and expert buyers’ agent such as Property Mavens can provide advice and help buyers and sellers to navigate any market and choose the right property. If you are a buyer or seller that needs assistance, contact us today for an obligation-free discussion.
Why do you need a buyer's agent?
Nichol was seeking a strong capital growth and cashflow property, so she engaged our Ballarat buyers agent services to help.
With a good budget and in a hot and very fast-rising market, Nichol wanted to purchase a low-maintenance property with potential for capital growth and development, while delivering a strong yield in the interim. We were able to successfully purchase this fantastic property, a 3-bedroom, 1-bathroom house in what is a highly competitive market, with no buyer competition.
As experienced buyers’ agents we discovered a few small issues with the property during the settlement period, and we were able to secure a $4000 rebate at settlement for Nichol.
In Nichol’s testimonial she gave us a 10/10, saying Property Mavens had changed her life!
If you want help to identify an investment-grade property like this one, whether it’s a family home or an investment property, click here to book a time with us to discuss your requirements. It’s 100% obligation-free.
Why do you need a vendors' advocate?
Miriam D. was referred to Property Mavens by a past client - her daughter. She sought our expert Vendor Advocacy advice to support and guide her throughout the sales process for her rare riverfront property in Werribee.
Miriam picked her preferred real estate agent based on our recommendation of three, and our advice and strategy worked, with her home selling for $50,000 above her reserve and seven days after the start of the Expressions of Interest sale campaign!
As professional property buyers and vendors advocates, we know the difference between a bad selling agent and a great one.
If you would like help to secure a fantastic outcome like this one, whether it’s selling a family home or an investment property, and you’re ready to get started, click here to book a time to discuss your requirements. It’s 100% obligation free.
We helped the couple to purchase this 3-bedroom, 1-bathroom house in Ballarat in 2019, negotiating a sale price under the vendor’s reserve and getting them $5000 in additional works to the property after some issues were found during the due diligence period.
Craig and Lorenz paid $645,000 for the property in April 2019 and just 3 years later it was valued at $865,000, equating to capital growth of 34%! As prices have continued to rise over 2021, this property is continuing to grow in value.
As professional property buyers we know the difference between a bad property and a good one, where to buy to generate the strongest returns, how to buy to secure the best result, and what properties are really worth, to ensure our clients don’t pay too much. If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
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