Thursday, November 22, 2012

Where Does The Real Estate Market Sit As 2012 Closes?

Yes we have another month to go but I have seen Christmas trees up so thought it was a reasonable time to have a look at the 2012 market. Let’s have a look at some of the latest data coming through on Greenslopes.

The number of properties for sale continues to fall slightly suggesting property owners are holding on to their homes rather than selling. Looking around the neighbourhood renovation work always seems to be taking place with people happy to add capital value to their dwellings.

image

In contrast sales volume remains steady but at levels not seen consistently since the mid 1990’s. What does this mean? As a property seller your chance of selling increases. Buyer numbers are constant but with less properties available your chances of selling are better. Certainly we have seen very reasonable selling times with average days on market sitting at 34 days for the second half of 2012.

image

Let’s look a little more long term.

image

The above graph shows the annual change in median sale prices over a 10 year period.

As at June 2012 we have seen a 8% per annum change in median price over 10 years, not a bad return for property investors. The crystal ball told us to jump out of the market in 2008, enjoy 14% per annum returns over 10 years and buy back in again now so if you have done that well done and next time let us all in on the secret!

Now for the very good news for investors. Let’s have a look at median asking rents.

image

As you can see the graph shows a consistent rise in rents and that is exactly what we are seeing. Over 70% of our lease renewals are attracting a rent increase and demand is still very high. Clearly there is still a strong desire to live in the inner city

So where to from here? I see steady sailing for 2013. Investors and owner occupiers are both active in the market and with interest rates at good levels. I predict a slight increase in sales volume and median sale price.

Matt Jones  |  0402 023 176
Greenslopes #1 Selling Agent