Survey Finds Now Is a Good Time To Buy

Source:REIV

Market Wrap (REIV)

A clearance rate of 74 per cent was recorded this weekend compared to 78 per cent last weekend and 76 per cent this weekend last year. There were 462 auctions reported to the REIV, with 341 selling and 121 being passed in, 49 of those on a vendor bid. Reservoir has recorded the highest number of auction sales in the year-to-date. Other suburbs in the top five are Craigieburn, Bentleigh East, Mount Waverley and Glen Waverley.

Source: Shuttesrstock

Survey Finds Now is a Good Time To Buy

Property investors appear to back with May recording a solid growth in investor lending and rumours that lenders are struggling to keep up with a backlog of loans to be processed. So where is that slump we’ve all been waiting for?

Late last week CoreLogic and TEG Rewards released their latest findings. Of the 2432 respondents surveyed, 64% believed now was a good time to buy a home, up from 60% a year ago. This confidence comes at a time when the property market is at its most vulnerable, according to experts.

Have jobs got anything to do with our strong property market? According to the latest ABS figures, Melbourne leads the way in annual employment growth with 78,300 new jobs added from Sydney at 61,400.

The current market has seen a resurgence from investors in a strong equity position looking to secure their retirement through property for growth and cash- flow in the form of rent. The rentvestor is also out in force, attempting to enter the property market through an in investment purchase while they stay home with mum and dad or rent themselves but at a lower amount. Meanwhile First Time Buyers are seeing house prices continue their upward trajectory and are trying to get into the market before missing out all together.

A low interest rate environment and the continued fight for more mortgage customers means first and second tier lenders are finding ways to lend more money to customers at levels up to a 90% Loan to Value Ratio (LVR) using Lenders Mortgage Insurance (LMI), this despite a crackdown on lending. Mortgage funders AFG and Liberty Financial have seen record growth in the loan books over past few years as buyers unable to meet tougher lending banking criteria search for finance alternatives.

Street Advocate

Good stock is very tight in the middle to inner suburbs of Melbourne.

Areas like Croydon, Sunshine and Chelsea, Hawthorn and Ivanhoe are booming and have seen price rises of 20-30% (Domain) for houses.

But attention on units has also been strong. Nelson Alexander’s Spiro Karragiannidis reporting over the weekend 50 plus groups through a split level apartment for sale in Thornbury.  “I was staggered at the response, it must be the price range sub $500,000 that’s getting all this attention from buyers.”

Richmond agent Edward Hobbs from Biggin Scott reported 2 sales from 2 auctions over the weekend, both with good crowds and 3-4 bidders.

Mr Hobbs saying, the “lack of stock is seeing even passed in properties being sold at the vendor’s price”. “ A few weeks ago we passed in a double storey townhouse at  5 Koorang Ave, then over the weekend we secured a sale to the same buyer at the vendor’s expected price. Obviously the buyer couldn’t find anything else that seemed good value so they came back to the same property”.

What our Clients Are Saying?

We found Peter Sarmas from Street Advocate took the hassle out of finding the right agent to sell our property and ensured a maximum result. By using Peter and his company we avoided the need to come up to speed on the most effective way to sell our property, as Peter has many years of experience to leverage on.

Not only did Peter find the best agent and negotiate a great commission rate for us, his fee was included in this negotiated fee! He kept up to date weekly with all the details, allowing us to focus on other things. We got a fantastic outcome, $130k above the reserve price. For us using Peter again would be a no-brainer.

Karl and Henty Punt, 118 Bridge St, Eltham

Thinking of buying or selling a home?

Visit our Street Advocate website or send an enquiry below or just call

Peter Sarmas on 0418 740 606.