The spring selling season is well underway and whilst this is typically the busiest time of the year for property sales, this year may prove to be quieter than normal. Whilst we have seen a lot of property come on the market in the last month, it is unlikely there will be a significant difference in volume compared to the last 12 months.
Combined with the low interest rates and population growt]h, the lack of properties on the market (stock levels) is what is driving the current increase in property prices.
More frequently our residential clients are coming to us with the frustration of having missed out at auction more than once. Buyers don’t have the time to monitor the market and inspect inappropriate properties. By employing Prosper Group as your buyers agent, this frustration will be minimised, the process streamlined and the horizon of properties broadened with off market opportunities.
On average, properties in Sydney have achieved capital growth of 6.6% over the past 5 years to January 2013. This is only slightly below that achieved by Melbourne over the same period, 6.9%. The current low levels of stock in Sydney appears to be a contributor in Sydney growing faster than Melbourne in the last 12 months. Sydney house values have increased 14.1% in the last 12 months compared with Melbourne increasing at 7.3%.
The number of properties listed for sale in all capital cities, with the exception of Perth and Darwin, is down 11.6% compared to the same time last year. At the national level there has been a 6.5% decline in listings compared to September 2013. In Sydney stock levels compared to September 2013 is down 16%, Melbourne is down 10.6% and Brisbane is down 9.6%.
The drop in the number of properties for sale coincides with a surge in the populations in NSW and Victoria, assisted by a large number of overseas migrations. As at March 2014, Australia’s overall population grew by 388,000 to arrive at 23.4 million. Almost half of that growth occurred in NSW whilst Victoria accounted for another 25%. Interstate migration to Qld and WA has tapered off due to the decline in resources activity.
If you are looking to purchase a property and have been unsuccessful due to the current conditions of the market. Rather than wait another 12 months and miss out on further capital growth, feel free to contact Prosper Group, 1300 664 373, for an obligation free conversation about how we, as Property Buyers Agents, can assist?