We're now just over halfway through the traditionally busy spring selling season which places us well to see how the residential market is faring so far. A guest column by Century 21 Chairman and owner, Charles Tarbey, recently appeared on Property Observer, the independent news website for investors and astute buyers, in which he considered spring sales activity up to this point, and gave his thoughts on what he expected to see in the real estate market for the remainder of 2011.
In the column Charles acknowledged that any expectations the real estate industry would usually hold based on historical trends had essentially been thrown out the window this year. Thanks to continued interest rate uncertainty and heightened concerns for global financial markets the residential market has experienced a slowdown over 2011 and based on the sales activity seen in September, the spring selling season doesn't look to be much different.
Charles referred to data from Century 21 offices nationwide, which showed that although properties are certainly on the market and buyers are looking, many are reluctant to make a purchase. While the number of properties listed is up on this time last year, the number of listings converted into sales is down.
Having said this, Charles noted that there continue to be areas where properties are selling successfully – which include in locations where there is little property available and no land releases planned. The $400,000 to $800,000 price range is also doing well.
In terms of vendor discounting, Charles acknowledged that this is a reality for those selling at the top end of the market and in coastal regions. However he also noted that such price discounting could see this end of the market come back strongly as buyers realise the purchase opportunities available.
For the rest of spring, and indeed the remainder of the year, Charles wrote that activity will depend mostly on consumer confidence and interest rate certainty. If the Reserve Bank elects to cut interest rates at its November meeting, this could be the news buyers are after to settle on a purchase decision.
Charles' full column can be read on the Property Observer website.
For more information surrounding market activity in your area, please drop by your local Century 21 office to speak with a property expert.