After a hesitant start to the year, we found that the sales activity in our area started to pick up in March and although the average days on the market has extended out slightly properties are still trading relatively well throughout the area.
There is no doubt the reason for the increased momentum is a balance between genuine sellers reacting to the mood of the market and in many cases adjusting their price expectations while buyers have been prepared to move forward with realistic offers, rather than simply looking for a bargain.
There is always an interesting period when the property market shifts, whether this trend is up or down. If moving up, it is buyers that need to react quickly or continually miss out on property. Conversely, when conditions soften it is sellers who need to re-adjust quickly to attract buyers and secure a sale. We are currently moving back into a balanced market where the purchasers that try to play hardball are often missing out with another buyer coming over the top. By the same token vendors who choose to ignore the market feedback are discovering the only variable moving up is their days on market.
With some new goal posts being created both vendors & purchasers seem to have found their feet again. We are seeing a sign of confidence by purchasers willing to purchase before having sold, but this is balanced out by settlement periods often extending out from the standard 42 days – to 60 &90 day settlements. This shows a balance of optimism that they will be able to sell their own home mixed with the realism that currently days on market are a little longer than we have seen in past markets.
With the Australian Dollar still sitting high & above parity with the US, we are seeing mainly domestic purchaser activity. There has been some movement from overseas buyers, but the majority seem are prepared to wait for the exchange rates to return back closer to their historical average before bringing funds into the country to purchase. Many are expecting that their delay maybe quite some time.
Reviewing economic news & data released recently – there has been conflicting commentary on the likely trend of interest rates over the course of 2011. Many are predicting interest rates to stay on hold for a while longer with a potential increase in late 2011.
Comparing our area to the current Sydney median house price, which now sits around $625,000. A little different to Seaforth $1,342,000, Balgowlah $1,250,000, Balgowlah Heights $1,710,000, Clontarf $2,400,000, Fairlight $1,255,000 and North Balgowlah $1,100,000.
As always the current market trends present opportunities for both buyers & sellers – if you would like to develop a greater understanding of what is happening in the market at your specific price point feel free to give our office a call on 9948 7080.
Wishing you all the best in achieving your property goals,
Tim Wirth and The Team at Richardson & Wrench Seaforth Balgowlah.
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