Thursday, February 13, 2014

Heating Up

The Australian Bureau of Statistics (ABS) figures released this week reveal Australian capital city property prices went up by 3.4% for the December quarter. Adelaide has increased by 2.8% over the quarter which is a staggering result! We are also finding that the top end is now also starting to improve. With 82 bids at one of our high end properties in Hazelwood Park last weekend, we too are feeling the market heating up and buyers are ready to act. The fear of missing out is now heavily planted in buyers' minds and we are experiencing this first hand and seeing it
in our sale results.

In the last week a number of friends have wanted to talk property investing - what to buy and where - and hear how the market is going. They have been bidding at auctions and seen prices soar well over what they hoped to pay. We are finding that properties are moving extremely quickly in the $400,000 - $550,000 range, especially the character homes close to the city.

My friends, like a number of first time buyers, have a set budget and can be left feeling disappointed that they were unable to purchase great property. So have they missed the boat?

The short answer is no.

There will always be opportunity to buy well and if your strategy is long-term, this can prove to be very profitable. But you can rarely predict the exact turning point in the market, only when it has started to. A Property Fund Manager (and my mentor at AMP Capital) explained to me that you can feel this change when it starts to happen. Quite simply, it's when you either have the seller calling you every 5 minutes for updates, or when things start to heat
up, its the buyer calling.

So what are we experiencing? Buyers are more active and on the front foot. The inner west is becoming more and more popular as buyers are seeing great value for money so close to the city. We are seeing quality stock, that's priced right, move very quickly. Our average time on market for our core areas in February so far is 17 days!

Now is the time to act. If you're thinking of selling, give our guys a call today!

Suzannah Toop

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