How often have you heard someone say, “If only we’d made our move just as the market was turning”? It’s a familiar cry from investors in all types of markets, and one that property owners around the world often use. The problem is, most people don’t realise that a market is turning until after it happens…in the case of real estate, the fi gures are often not published until at least three months after the event.
However, here at PhilipWebb Real Estate we believe that local property owners currently have the opportunity to ‘seize the day’ just as the tide is turning.
Consider these facts:
• We’ve had two reductions to official interestrates so far this year, and several economists are tipping another cut before the end of 2019.
• In recent months APRA has not only removed restrictions on investor lending and the cap on interest-only loans, but has eased the income requirements on home loans. This last change alone has increased most home buyer’s borrowing capacity by more than 10%.
• The Federal Government has reduced income tax rates, negative gearing remains in place and is looking at providing further assistance to first home buyers.
• Melbourne’s auction clearance rates have been steadily climbing recently, reaching their highest levels in more than a year.
• Attendances at our open houses have increased markedly, along with the number of active bidders at our auctions.
When you consider all these factors, it is no surprise that property analysts like Corelogic have suggested that the Melbourne market may already have levelled out. Indeed, there are early signs that median property prices may have begun to rise, if very slowly.
That makes the next month or two a prime opportunity for anyone planning on making a move in 2019, particularly when you remember that those vendors who sell early in spring often enjoy better sales results than those who wait until later in the year (when competition from other sellers increases).
With this in mind, I would suggest that anyone who is planning on selling in 2019 should be starting their preparations right now. So, if you would like some obligation-free advice on what is worth doing to maximise your sale price, feel free to give us a call at any time.