Until this thing changes, property prices will continue to rise.
With all the turmoil in global markets right now, Aussie property remains a beacon of hope.
(As it always does.)
And despite all the fears of a collapse in property prices, the market seems to have stabilised, and some auctions are even blowing right through their reserves.
I mean three auctions last weekend finished a full $200,000 over reserve:
Among the most competitive auctions was a three-bedroom, two-bathroom house at 16 Seaview Street, Clovelly, in Sydney’s eastern suburbs.
The house sold for $3.63 million – $230,000 above the reserve – after competitive bidding among five buyers.
Selling agent Nicholas Wise of Ray White Eastern Beaches said the home attracted over 100 buyers and more than 350 inquiries.
A duplex at 3 Lilla Place, Quakers Hill in Sydney’s west, also exceeded sellers’ expectations after it sold under the hammer for $1.315 million, which was $215,000 above the reserve.
In Melbourne, a four-bedroom, two-bathroom house at 29 Coonawarra Drive, Vermont South, 20 kilometres east of the CBD, was sold at auction for $1.706 million, which was $206,000 above the reserve.
Ray White Forest Hill selling agent Hugh Francis said it was not unusual for homes to sell more than $200,000 above reserve. “Quality homes are still getting big numbers, particularly with the low supply. The decent homes really stand out,” he said.
And that’s it, isn’t it? There’s low supply – we just haven’t seen the rush of homes to market that we were expecting. In fact, it went the other way. Supply is falling.
And with supply falling, prices are lifting.
And properties are selling well. Auction clearance rates seem to suggest the market is heating up again:
Nearly 74 per cent of the homes taken to auction in Sydney sold at the weekend, a sharp rebound from the previous week and the second-best result this year, amid signs the market is stabilising earlier than expected, preliminary data from CoreLogic shows.
Tim Lawless, CoreLogic research director, said while it was too early to call it a recovery, the persistently low level of stock and rising demand may have started to tilt the market in favour of sellers.
“There’s only been two weeks so far this year when Sydney’s clearance rates dropped below 70 per cent, so it’s quite a turnaround from where the balance of buyers and sellers was sitting through last year,” Mr Lawless said.
“So this really looks to me as if the balance between buyers and sellers is now moving back towards favouring sellers, mostly because we’re still seeing listings as low as what they are.”
So much for that buyer’s market hey? That didn’t last long.
The recovery in property has already begun. And nothing short of a collapse of the global financial system is going to slow it down…
… oh hang on.
JG.