The sun is shining, the flowers are blooming, the birds are nesting and the bees are buzzing, which can only mean one thing: Selling season.
In fact, statistics from CoreLogic RP Data show that in just the first week of spring in 2016, the volume of auctions in our capital cities was at its highest level since May. Furthermore, there were over 1,600 more auctions in September 2016 then during August 2016.
Late winter and early spring are two of the most popular times of the year to sell your home, as buyers emerge from hibernation and compete for the influx of homes on the market. The increased supply means greater choice for buyers, while the surge in demand can result in better prices for vendors. Win win!
However, there are signs that this could be one of the best seasons ever for sellers. There are a number of factors all combining to entice investors – both international and domestic – towards bricks and mortar, consequently driving up prices.
Low Cash Rate
The current cash rate of 1.50 per cent has resulted in very favourable conditions for buyers (and therefore sellers). As the Reserve Bank of Australia’s Philip Lowe noted: “The rate of increase in housing prices is also lower than it was a year ago, although prices in some markets have been rising briskly over the past few months”.
With home loan repayments easier to manage, the property market has been made more enticing for buyers, not to mention the omnipresent fact that the advantageous rates won’t last forever!
Weak Aussie Dollar and Share Market
A low Australian dollar is beneficial to those who are selling property, as it makes it more affordable for overseas investors. According to a report from the Commonwealth Bank, since 2011 the dollar has fallen from its peak of A$1.10 to around A$0.76 at the time of writing.
Recent global economic and political events, namely Brexit and Donald Trump being elected US President, has seen volatile movements for Australia’s share market. Not only does this make property more appealing to Australian and international investors, but the added competition between buyers will likely push up your price tag.
What are prices doing?
The latest Open Market report found that real estate markets across the country continue to perform strongly with property values increasing by 2.9% during the September quarter and 8.6% higher over the first nine months of 2019.