With the easing of COVID restrictions, our day to day lives are beginning to feel a bit closer to normality, which means business as usual for many Australians.
As March came to an end so did job keeper payments and government support for businesses. Many believed that this would have a negative impact on the market, however the market appears to be unaffected. Low interest rates and low stock levels are keeping demand high, sending the market into a boom. As a result of this, both property value and sales are soaring, with a 33% increase in property sales since last year. The latest data from CoreLogic saw home values surging by 3.7% over March which is 6.7% higher than the first quarter of the year.
This significant increase in demand and value may lend to lack of stock on the market as homeowners choose to sit tight on their investments. Whilst this may be suitable for some, this boom presents an opportunity for homeowners to gain a significant profit on their property. This was evident in our agency’s recent sale of 41 Belgrave Esplanade, Sylvania with Mr Andrew Cooley from Avenue Auctions. With all the demand we received, the auction was brought forward and had a total of 10 registered bidders totalling 38 bids. The property sold for $831,000 over the reserve, which was an outstanding result that exceeded market expectations.
We found that the sale of this 953sqm R3 Zoned site, received the attention of many property developers, suggesting this type of buyer is looking at land banking sites as stock levels decline.
Auctions appear to be the most popular form of listing as high demand brings in more buyers and thus more bidders, driving property prices higher. With purchasers ready to buy, it is becoming more common for auctions to be brought forward or for properties to be sold before auction.
We have also noticed a significant increase in apartment/unit sales, which may have been a result of 50.4% of mainly first home buyers entering the market. This new surge of first home buyer demand can be attributed to the slightly lower values of this type of property because of the oversupply of units in the area.
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 agents direct. We are always happy to assist in any way we can.