Snapshot Of The Australian Real Estate Market
Looking at the real estate market from the buyer’s point of view is a very
important key to understanding the market.
I came across a snapshot of the real estate market from a buyer’s point of view info graphic the other day and found it quite interesting.
The info graphic shows that first home buyers are out in force and are still aspiring to buy a house and land even though it is very hard to get a property under $500,000 not too far from the city. Some buyers may need to adjust their expectations and settle for townhouses and units but the low interest rates have definitely inspired this demographic to jump off the fence there been sitting on.
Over 100 groups come through an open home in Blacktown
One of our open homes (we had in Blacktown where the medium price is approximately $450,000 we had over 100 groups come through (that is well over 300 people). It’s funny to see so many people trying to cram into one 3 bedroom home. And it is amazing to see people waiting in line to make offers on property.
We also have many astute investors currently taking advantage of record low interest rates to add more properties to their portfolio.
I do see a lot of builders and developers wandering around but taking a long hard critical look on whether the numbers line up to improve value on these homes. That said it is still a very active market and the election has not slowed down in fact it is sped up.
STRONG results were achieved by our sales team last month!
Some strong results were achieved by our sales team last month, in some cases heated competition driving the eventual selling prices way over the initial asking prices, most notably in the case of 2 Andrews Avenue Toongabbie where 100 registered buyers inspected in the first weekend of marketing resulting in a sale price almost $100,000 over the asking price!
Another open home that had close to 300 groups turn up and who knows the actual number of people. In fact it actually stops traffic and people thought that there was a really big party but actually it was just an open homes. 45 minutes later people still had not inspected the home and just decided to make offers at the door and go to the next of their open homes.
A view from an Australia wide prospective
Mr Chronican, Chief of ANZ Banking in Australia said recently “because of state govt. ‘red tape’ around housing construction…there is currently a ‘shortage of 270,000 dwellings, which could rise to 370,000 by 2015 and put upward pressure on property prices”.
That’s a serious under supply. So not only is there massive demand for property fuelled by factors above. But there’s also a shortage in housing supply. A perfect storm for sustainable growth = a great time for property investors.
The storm is brewing right in the Australian property market because of;
• Low interest rates
• The steadily rising share-market
• Record auction clearance rates
• The soaring popularity of SMSFs
• And an influx of Chinese buyers
If you would like to receive an updated appraisal of your own property’s value we look forward to hearing, so pick up the phone and call us on 9896 2333.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.