Tuesday, January 25, 2011

After a bit of a sluggish start to the year, the rental market is up and firing!

Demand is outstripping supply and prospective tenants are making offers over the asking price in an attempt to outbid the competition and secure their next home.

As country students prepare for the start of university, demand is continuing to grow and properties under $500 per week are in huge demand. To put it in perspective a $265 per week unit in Glenelg generated around 100 enquiries last week, while an inspection in Norwood for $400 per week had 40 groups of tenants lined up to view the home.

At the other end of the market, the seasonal wave of professionals relocating from interstate has arrived, they have executive homes in their sights and they’re snapping them up without hesitation. Our team has signed up agreements for a $1,200 per week property in Glenelg, with multiple applications received, and a $1,100pw home in Seacliff, viewed and let via the web. Meanwhile one family relocating from the country and another searching for their next real estate purchase have secured ToopExec rentals in Wattle Park ($1,100pw) and Burnside ($1,250pw).

Our vacancy rates are tracking at a low 1%, with the North at just 0.4% after huge demand resulted in 20 lettings within the first three weeks of January.

It’s just going off right now, and it’s not isolated to Adelaide. Rentals across the Fleurieu have been pumping over the past couple of months. With costs of living increasing, many are relocating to Victor Harbor and the surrounding regions for a more affordable lifestyle. Investors, it’s worth keeping a close eye on this! Property is affordable and if you choose well, the returns are good.

On the sales frontline, the reports continue to be somewhat mixed…

Last weekend saw another jump in Open Inspection numbers, clocking up 2145 in The Advertiser. Buyer attendance continues to be sporadic with the best attended homes being those with prices closely aligned to the current marketplace, as purchasers continue to play their cards close to their chests. We’re seeing a trickle of Investors making enquiries but holding off for the right time… perhaps we’ll see some more action here after the Reserve Bank meet on Tuesday.

Buyers are ranging from being in ‘no hurry’, to just wanting to ‘get on with it’. Toop’s Tip: if you’re looking to buy, this truly is the time – after all we’re in a buyer’s market, aren’t we?

Anthony Toop, Managing Director.
© Toop Real Estate Group

Thursday, January 20, 2011

New Year buyers hit the market

Water… we look on it so often as a precious gift, yet at times like this it can make you wonder. The catastrophic events of the last few weeks have touched us all at different moments. For some it was while watching heart stopping footage of flood waters, hearing tales of survival and loss; for others, at the moment of reaching friends and loved ones in the affected regions. Our hearts go out to all those who have lost their businesses, homes and so much more.

To our fellow realtors in Queensland, New South Wales and now Victoria we can only begin to imagine the road that lies ahead… It will be incredibly challenging, to say the least, and we wish you all the best in rebuilding what you have lost.

We have been incredibly lucky so far in South Australia, with just a bit of rain and in some of our regional areas, minor flooding. Our homes are dry, our property market is stable and on a grand scale, all is well.

As for the attendance at last weekend’s open homes - the results are in!

As anticipated Open Inspection numbers soared to 1955 homes. Almost double that of the weekend before. Buyer attendance, on average, was less with homes heading to auction attracting slightly higher numbers. New top end properties and at the other end of the scale, entry level and investment properties, were also well received. Our team on the frontline received an obvious new wave of buyers who are well researched, ready to buy and are willing to put pen to paper.

Sellers, don’t misconstrue this and think the ball’s back in your court. Yes, buyers are taking the plunge and making offers which is great news, but more often than not they are coming in well below asking price. More than ever, the market continues to be price sensitive and over the coming weeks, there will be even more properties available for buyers to choose from.

Seller’s this is where you need to put your business hat on. If your property is heading to auction and you receive an offer prior to the day, consider it wisely. In this market, an early offer doesn’t mean there will be another 5 on auction day… make your decision wisely as the wrong one could be costly.

Anthony Toop, Managing Director.
© Toop Real Estate Group