Friday, January 22, 2010

Economic and social factors in play

While the 26th of January marks the First Fleet’s arrival to our country in 1788, 222 years on Australia Day allows us to celebrate so much more. Our diverse multi-cultural society, camaraderie among local communities, and all that we often take for granted yet are so privileged to have in a democracy.

This day also allows us to recognise and reflect on our history... then look to the future. When it comes to property it’s the process of distinguishing where the market has been and predicting where it is heading.

Right now there are economic and social factors in play with finance remaining one of the heavy weights. This week Westpac tightened their ‘home loan’ belt, reducing the maximum standard variable lend available for new clients from 92% to 87% of a home’s purchase price. On top of this, finance approvals across all lenders are now taking an average of 21 days to come through, in effect stalling the purchase process. For buyers, gaining pre-approval is more important than ever; it allows you to act quicker, submit unconditional offers and be placed ahead of the competition.

As for social factors... well the Australia Day public holiday, while we love it, can have an interesting impact on selling homes. The market is currently experiencing a shortage of well presented and accurately priced property. Feedback from the frontlines is there aren’t enough homes buyers can ‘just move into’ and not need to renovate or redecorate. So where does Australia Day come in? Sellers are holding off launching their homes to the market for an extra week, concerned that many buyers will be making the most of Tuesday’s holiday and heading away for a long weekend. With this in mind, next weekend could see a bumper release of new stock for buyers. Our sales team has some fantastic properties undergoing final preparations, ready for the 30th - if you’re buying be sure to see these homes first by going to

Keep an eye on Toop.TV for the latest news impacting the market. Wednesday’s show was a must see for investors as we broadcast an interview with State Opposition Leader, Isobel Redmond, on Land Tax then talked Tennis and SA Properties with Roger Rasheed. To watch or podcast the show head to As for the upcoming show, tune in on Wednesday at 1pm to find out how the Fleurieu is leading the way in sustainable living and see one of South Australia’s finest homes in Clayton Bay.

Anthony Toop, Managing Director.

© Toop Real Estate Group

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