Thursday, July 20, 2017

What’s trending in our market this winter?

How's the market tracking? This is one of the most common questions our team is asked out on the ground each week. Real estate is a hot topic and people are eager to know what's happening in the market, what their property might be worth and how house prices in their suburb or city are performing. Staying up to date on property market trends is key to knowing when it's your time to make a move. 

Team Toop has just released our latest Quarterly Property Report and we cannot believe how quickly the first half of 2017 has passed us by. Traditionally throughout the cooler months we see stock levels in the market sit lower than usual, but we've seen first-hand that this hasn't impacted buyer demand for properties, which continues to surge.  

Looking to the national market... the CoreLogic Home Value Index recorded a recovery from the 1.1% fall in May, now sitting at a 1.8% rise in capital city dwelling values over the month of June. It was also recorded in CoreLogic's latest Pain & Gain Report that 90.2% of properties nationally sold at or above their previous purchase price. Both stats trending higher than last year, indicating a strong market.

Back home... Adelaide remains the most affordable mainland capital city in Australia. With our stable returns and consistent growth it's clear that we are a highly attractive market for investors. Our local market continued to be extremely competitive in the second quarter of the year. For suburbs in sought after locations with relatively low stock available, we saw transactions occurring at a rapid pace. These suburbs included Norwood, St Peters, Leabrook, Malvern, Millswood, Aldgate, Mile End and Henley Beach. 

What stood out to us the most during the quarter was that Adelaide's auction clearance rate sat in the top tier of the nation at 71.8%, showing the confidence from buyers in our market. Sydney and Melbourne recorded 72.4% and 71.8% respectively. CoreLogic RP Data statistics state that not only does an auction help achieve premium results, but in South Australia properties sell on average in under half the time than properties listed for private sale. Serious buyers also benefit from this process as they can utilise their financial position on auction day to have an advantage over conditional buyers in the market.

The auction method in South Australia is certainly gaining traction, however, we are still behind our eastern state rivals who on average take over four to seven times the amount of properties to auction. Its popularity has maintained power throughout winter with auction activity increasing across the majority of our capital cities.

At Toop&Toop we have always been strong advocates for the auction process and this passion shone through at the Real Estate Institute of South Australia (REISA) Auctioneering Championships last week, with our team taking out top honours in the finals. Subject to a panel of interstate judges and incredibly tough mock auction conditions, Team Toop's Bronte Manuel made history by taking out South Australia's Auctioneer of the Year for the third year in a row! He will now go on to represent South Australia on the world stage at the Australasian Auctioneering Championships in September, held in Adelaide. Team Toop's Kirk Fernandez also took out the 2017 Novice Auctioneer of the Year!

From the entire team, a big congratulations 
to you both, we are so proud. Go get 'em 
in September Bronte!

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