MARKET UPDATE July 2016

July 20, 2016

As the first half of 2016 is behind us, the comparison to the same period last year tells a vivid story about the local market right now, today. A knowledge of this comparison is essential for all Sellers.

Global factors and overall confidence being low, we have seen a fall away of sales volumes, quite dramatically.

Year to date (6 months) Applecross has had 63 sales (Down from 84 or 25% on last year) Mount Pleasant is a dramatic 45 sales down from 86 (48% down) on last year.

Applecross this year 108 compared to the same number last year 108 days to sell. Mount Pleasant 117 days to sell in 2016, up from 91 days in 2015.

The interesting figure I always look at is what I have called for years, “The two markets phenomenon”, the days on market for the unsold stock. Two markets meaning, the half of listed properties that sell, and the other half that don’t.

Applecross- Days on market (based on 95 properties effective 29/6) is 291 (That’s right).
Mount Pleasant- Days on market (based on 71 properties effective 29/6) is 145 (Still a big number).
Many Sellers have been caught in a falling market, no doubt. Some areas have perhaps adjusted 5-10% in the past 6 months. Yet some properties still sell in days and weeks. Why is that?

The good news!
If you are a genuine Buyer that is willing to engage good properties and pay a fair market value price there are many listings available and Seller’s that want to talk to you and release their properties to you

If you are a Seller, there are tried and true methods to work with this market, and agents that specialise in getting results in challenging markets.

It is correct to say, it is definitely not a one size fits all, and doing more of the same as a famous man by the name of Einstein said was “the definition of insanity”.

If you are looking to move, talk to me about how we can effectively price and position your property to stand out, in what is a tight Buyers’ market.

It can be disastrous to be stranded as one of the properties that misses the market. Talk to me about how we can avoid this.

I remain optimistic, buoyed and enthusiastic about the future local market. Much of our demand from Buyers comes from our existing database or local Buyers wanting to upsize, downsize or upgrade location within the City of Melville. Irrespective of global economic factors, there will always be this local demand.

REMEMBER: If you buy and sell in the same market, the market is negated and doesn’t really matter.

Thank you and see you in the market place.