by Curtis Cooper | realestate.com.au | 25 October 2011
Rates will go up, rates will go down, rates will stay the same. There is more GFC grief to come, the property market is flat, the market is improving. Now is the time to buy, now is the time to sell.
The above are just some of the statements that have been bandied about by experts and analysts of Australia’s residential property market over the last few months so the Australian public could more than be forgiven for not having a clue what state our property market is currently in.
So what’s the answer? Where’s it at?
We thought who better to shed some light on the situation than those with their finger permanently pressed on the property pulse. Yes it’s the agents who are out there day after day, night after night, weekend after weekend living and breathing all things property.
Hocking Stuart Real Estate, Richmond Director Peter Perrignon (PP) and Licensed Estate Agent, Asset Agents Sunshine Coast Ann Ellison-Cole (AE), were kind enough to give us their view.
What do you believe the state of the current property market is?
PP: It’s certainly a changed market from what it was a year ago – it would be silly of us to say otherwise. Clearance rates were at 75 to 80 per cent at the end of November last year. This year is the first year since about 1992 I believe that clearance rates have dropped below 60 per cent.
AE: There’s no doubt it has been challenging. I work all ends of the market but do specialise in prestige and unique properties and it’s hasn’t been easy. In saying that though our most recent sales have all been cash buyers wanting fast settlements, which has been interesting.
Why do you think that is?
PP: The market is clearly tougher at the moment and I think that has a lot to do with the uncertainty of what is going on in the world. It makes employers nervous and these (world financial) issues are of obvious concern to people. Although having said that, we’ve looked and analysed our figures and even with these things going on our year to date clearance rate within two weeks of holding a property for auction is running at 81%. While vendors are having to meet the market more than they would like at the moment, the reality is properties are still selling.
Where do you see things heading from here?
PP: I think it will be at least 12 months before we see any kind of upswing. People really aren’t selling unless they have a valid reason to. We are already experiencing a difficult spring season with sales volumes certainly compromised on last year – for example: property days on market in city areas have gone up at least 25 per cent on what they were last year.
AE: I would like to think we’ve more or less reached the bottom (of tough market conditions). We have certainly been getting more enquiries lately but having said that, buyers are setting the pace at the moment. In terms of prices, anything that seems overpriced, buyers are walking straight past.
In summary:
PP: Considering what’s happening in the world I think it’s going pretty well. If you look at property in America it was good buying there a year ago and now it’s halved again, I think we’re very blessed living in Australia.
AE: We’ve seen some pretty big price falls across the board, especially up here on the Sunshine Coast, but I feel things are beginning to stabilise
