Pre Christmas Update
In this pre-Christmas season the market in the areas we serve is awash with property for sale. It would seem the lack of enthusiasm on the part of vendors to go to the market post election last year is being made up for this year. But as the number of homes available for sale continues to rise, the number of buyers has not increased commensurately, consequently the time it takes to sell has also increased.
The jury is out, the run up to Christmas will be an interesting one on the back of the foreign buyer ban that came into effect on October 22. We observe the lower end of the market, say $500,000-$1,500,000, continues to be buoyant as renters make the most of historically low interest rates. At the upper end there has been a distinct wait and see attitude. Although as we speak, things appear to be thawing out slightly as buyers make pre-Christmas decisions.
One of the issues we face as an industry is the proliferation of opinion of a home’s value as indicated on various property websites. These are generally called the ‘estimated selling range’ and are formulated based on various algorithms that use historical sales data. In many cases these ranges are incorrect, as are the latest council valuations. These two pieces of information together are currently indicating a likely selling range in excess of today’s value. This can be very frustrating for vendors wanting to sell. Consequently, buyers looking to purchase should inspect homes without prejudice.
In terms of what is the market doing – in short, its steady as she goes. There has been a tinge of hesitation/lack of confidence, which is actually hard to understand given the overall state of the nation, immigration, low interest rates and low unemployment. However, nothing stays the same for long in this business – standby.
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