May Market Update

The May market update represents the end of the spring market and while there have been strong overall results across Australia’s regions with the national media price up 0.3% for the month, the Illawarra really is a tale of two cities.

While places like Kanahooka, Horsley and Kembla Grange continue to post modest gains roughly in line with the rest of the country, south of the Windang bridge, prices have eased a little offering some respite for first home buyers. The southern coastal hamlet of Gerroa made headlines last month because of $187,000 downturn, but when you place that figure up against the nearly $2 million median and strong growth over the past few years, it probably represents more of an opportunity than anything to be concerned about over the long term. Likewise, Shellharbour, Lake Illawarra Tullimbar and Kiama eased off a little.

Bartlett and Co. Property principal Tim Bartlett is upbeat about the winter market. “With lower stock on the market coming into winter, there is plenty of opportunity for vendors to sell in what is still a deep line of buyers,” he says.

 

 

 

 

  Get your house ready for sale in winter

The decision to sell is one of the most important financial decisions a family can make, combining excitement about the future and the stress of dealing with open houses, banks and brokers, and finding a new place to live.

We spoke with Bartlett and Co. principal Tim Bartlett about the benefits of selling in the cooler months.

Tim suggests that winter is one of the most underrated seasons because, “With winter typically having fewer homes on the market, there is an opportunity to get a great price.” he says. “It’s also an ideal time to show off energy efficiencies including solar panels, double-glassed windows and your best heating solutions.”

“When it comes to showcasing your home for a winter sale, getting those cushions and throw rugs really helps to bring out the cosier aspects of the home.”

To find out more about selling in winter, get in contact with Tim Bartlett.

 

 

 

  Is the price right? 

The annual talk-fest at the Australian Real Estate Conference on the Gold Coast at the end of May outlined a number of trends in the Australian market, as Australians continue to grapple with inflation and interest rates, a cost of living crisis and upward pressure on rents.

And all eyes were on getting the price right.

Among the trends, continuing uncertainty around the direction of interest rates came out on top as the biggest worry among both buyers and sellers. With the RBA signalling that its fight with inflation was not yet over, borrowers have been less willing to borrow up to their capacity.

That’s why getting the pricing right was also the most important factor for agents. While premium properties in the right locations continued to attract buyers, experienced agents needed to think much more carefully about price as buyers become more sensitive to price movements and are much slower in making a decision.

The ‘get into the market at any cost’ mentality has shifted as more buyers become value driven.

 

  Interest rates and the winter market 

Some of Australia’s leading economic pundits have looked into the crystal ball about the outlook for the winter housing market, where traditionally the market cools in line with the temperature.

With the March quarterly CPI figures showing inflation had stubbornly risen by 1%, talk of an interest rate cut has moved from the end of the year until 2025. And while AMP’s Shane Oliver says that could take the heat out of the market, the CBA’s chief economist Gareth Aird is still betting on a November cut and the expectation will see a bit of activity through winter.

Additionally, Aird says that the fundamentals remain unchanged independent of what the RBA decides to do, “We have low vacancy rates, strong population growth and low housing supply.

“So all of those forces will be there this year, independently of what the RBA does, and they will all be acting to support home prices because there’s a huge imbalance at the moment between the rate at which we’re building homes and the population growth that’s caused vacancy rates to drop to record lows right around the country.”

As always, Tim suggests that selling and buying in the market is still the smartest decision.

 

 

 

 

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