The Spring Selling Season

The spring selling season is well under way. Although stock levels are down compared with the same time last year we are still seeing an increase in the level of property being offered for sale compared to a few months ago. More importantly we are experiencing increased buyer activity.

There are a large number of sub $500,000 properties on the market as a direct result of changes to the government incentive schemes for first home buyers. As of 1 January 2012 stamp duty concessions for first home buyers will no longer be available except for brand new or off plan purchases. If first home buyers purchase before the end of the year they are exempt from paying stamp duty (if the purchase price is under $500K)

We have quite a number of exciting listings coming up. Click through to our website for further details. www.century21mosman.com.

I should also mention Century 21's recent success with Channel 10's “The Renovators”. Century 21 was appointed as exclusive selling agents for the 6 houses. All 6 houses sold on Auction night and the show which aired last Wednesday night was the top rating program of the evening. It seems Australians still have an affinity with property.

Despite the strength of the Australian Dollar we are still seeing strong enquiry from Overseas buyers. In fact,  the recent dip in the strength of the Aussie dollar has allowed o/s buyers to spend more money.  I have come across a number of cashed up foreign buyers looking to invest in Australia. Australia is still seen by many as politically and financially stable.

Interest rates: The current stability in interest rates is expected to continue well into 2012. There is now a possibility that the Reserve Bank of Australia could cut interest rates in late 2011 to kick-start a recovery in consumer confidence and spending, thereby initiating the next phase of demand, the recovery in the economy and housing market.

Auction clearance rates have continued to hover around the 55% to 60% mark for months now. Although it would be even better to have a higher clearance rate, what it does show is stability in the market. Our office clearance rates are somewhat higher than the Sydney average at around the 70% mark, evidence that your choice of agent directly affects the end result.

There has been some other good news lately. According to a recent BIS Shrapnell report , housing prices are predicted to increase  by about 20% in Perth and Sydney by 2014

In Sydney, owner-occupier and investor demand is forecast to rise in 2012, underpinned by the rising dwelling deficiency and strengthening economic conditions, leading to higher price growth and dwelling construction.

The report also shows that although the median house value rose to $644,700 in June 2011, real house prices in today’s dollar terms remain below their median house price peak of $707,000 in the March 2004 quarter.

Ian Graham, chief executive of QBE Lenders’ Mortgage Insurance Limited (QBE LMI), says despite the current volatility in the global economy, QBE LMI is cautiously optimistic about the outlook for the Australian housing market.

If all the information at hand is accurate and if you believe the so called experts it appears property prices have bottomed and are on the way up.

Buyers should be considering purchasing now, so for those thinking of selling I would encourage you to consider putting you property on the market now. I never like making predictions but what I can say is that the current market seems to be a great market in which to be trading property.