By Philip Webb
With February well and truly underway, buyers are out in full force. We’re seeing great numbers through our open for inspections and healthy competition among house hunters, which has been spurred on by a shortage of stock. The strong surge in listings that carried over from 2020 is starting to ease, whilst demand only ramps up, meaning that everything is bubbling in the right way at the moment.
However, we don’t believe that these conditions will last too much longer – PhilipWebb is already starting to see listing numbers creep back up, as vendors kick back into gear and get their home ready for sale in 2021.
These conditions signify that confidence has definitely returned to the Melbourne market, with many of our properties selling significantly above the reserve price at auction. We’re noticing that quite a few people are securing a property before they sell at the moment, with buyers keen to lock something down whilst the market appears relatively stable.
Looking now to the property management space, and our hard-working PMs are in the thick of the busiest time of the year for leasing. Strong demand for properties is currently being matched by a large volume of notices to vacate, which means that tenants are likely to snag a bargain during this time.
This is especially true for the CBD area, which is seeing a substantial drop in rent price and a 10 – 15 per cent increase in vacancy rates due to an absence of international students. These price drops are now pushing out into the inner-city suburbs, a market that is usually quite inflated in traditional circumstances.
Despite this, landlords shouldn’t panic – the rental market is also quite price-sensitive, so once you get the price right with your rental property, good tenant applications will follow.
If you’d like to have a chat to us about the buying, selling, renting or leasing a home in 2021, give us a call today!