Spring is just around the corner, flowers will bloom, baby ducklings will appear, but what does this mean for the property market? And what are the implications for you? Our conveyancing expert explains…
Spring is the biggest market of the year. There are more houses listed for sale in spring than in any other time of the year. The economic situation has many analysts questioning what Spring has in store for the Australian property market.
The Property Council of Australia has reported a positive outlook compared to last year – when there was an abundance of sellers but very few buyers and prices were right down. This year, vendors have cause to be more optimistic as many property markets have shown signs of growth in the lead up to September. But buyers are still likely to be able to find a good deal.
Andrew Wilson, the senior economist at Australian Property Monitors, has given in-depth consideration to the capital city markets around Australia. He provides a good overview of how the national market is travelling.
He reports a positive outlook in Sydney, Melbourne, Perth and Canberra where property is performing quite well for vendors. This is especially the case in Perth and Canberra which each have unique features that keep housing prices competitive.
Brisbane and Adelaide are still not showing strong signs of recovery and Darwin appears to be quite volatile. Hobart is just holding its position, with no upward movement, but no downward movement either.
So, is this the right time for you to enter the market?
If you’re looking to sell, then the positive upturns in New South Wales and Victoria are good news. Prices are looking up in many areas, though some markets do remain sluggish.
Notably, the middle of the market is making the best recovery. The higher end luxury market has not shown the same positive indicators.
The best indicator will always be your local market. Investigate what other similar houses are going for to get a feel for what you might get. Additionally consider options like renovation. Small investments could easily add significant value to your property. Capitalising on the positives of your property (close to services, quiet) will also help you to secure a great price.
If you’re in the market to buy, things are improving. A downturn in prices means that you can save valuable dollars on your purchase and it makes vendors keener to secure that sale. Housing affordability is also up, at it’s highest since September 2009, led by the Adelaide and Perth markets. Price competition will vary according to the location; however, there are still plenty of areas where property is selling at great prices.
If you’re in the property market to buy and sell simultaneously, then the state of the market isn’t really that important. Yes, you might be selling your house for less, but if you’re then buying another property, you’ll get that for less as well, so in reality you are no worse off than if you sold for more and then purchased for more. Investors are active in the current market as there are substantial benefits in terms of price in many areas.
Spring is a time for new beginnings, if the market uncertainty has kept you away from property for a while, now may be the time to step back in. There’ll be lots of different properties on the market and a variety of rates. You might be surprised by what you find.
For more information about property and conveyancing in your area, feel free to call or email us at mail@ozpropertylaw.com or 1300 136 386. We’d love to help you out.
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