Winter has arrived and we can definitely feel it! Unlike the weather, the real estate market continues to remain hot with properties selling quicker than previous years.
The most recent REA Insights Housing Market Indicators Report noted that the average days on the market has dropped from 39 days to a historic low of 32 days, highlighting the strong selling conditions of this current market. This strong buyer demand, fuelled by record low-interest rates, is exceeding the supply of properties for sale, leading to stiff buyer competition and fast sales.
In past years, winter is usually the season where people tend to hold off on selling their property until spring. If this trend continues, the market may see a greater stock shortage, however, at this point the market appears to remain steady.
Auctions appear to be the favoured method of sale given the strong buyer demand. Corelogic has noted that the auction clearance rate is currently sitting at a high of 77% which is 20% greater than clearance this time last year. Not only are more properties selling at auction, but they are more commonly selling significantly over the reserve prices. Our auctioneer Andrew Cooley from AvenueAuctions noted an average of $88,000 over reserve prices in the month of May. Additionally, DJW Property saw multiple properties receive up to $300,000 above their reserve. This gives a notion that buyers are willing to offer more in this market given the strong bidder competition at auctions that drive purchase prices.
It is our suggestion that for those who are looking to sell, list now while the real estate market remains hot. This may be your best opportunity to see a substantial financial gain on your property investment.
If you are thinking of selling or would like a complimentary market appraisal, please do not hesitate to contact our office on 02 9544 9688 or one of the agents direct. We are always happy to assist in any way we can.