Clements Estate Agents

In the time you are reading this new interest rates have gone up by at least .25%. We are now on the home stretch for 2009 and demand is peaking before Christmas with only 6 Auction weekends left in the year. Clearance rates have remained north of 80% for a large part of 2009 according to REIV figures, although last year at this time it was in the mid 50% range, prices fell by approximately 30% in this period. Clements Estate Agents have had another strong year of negotiations with only one property requiring a post auction negotiation to secure an additional $75,000 before sale.

Prestige property was hit hard last year although has now recovered reasonably well from the worst of the financial crisis with lower stock levels helping underpin prices.

On the 31st October the Federal Housing Minister Tanya Plibersek announced the new year will see states empowered to refuse to pay the first home buyers grant to people buying or building more expensive homes. In Victoria this cap will be $600,000, NSW and WA $750,000, Queensland $1m. In October the grant was cut from $14,000 to $10,500 for existing homes and $21,000 to $14,000 for new homes. The Victorian Government offers an additional $2000 for established homes and $11,000 for new homes and $15,500 for regional areas.

The market is no doubt undersupplied and sale prices are surging which is great for selling real estate. Buyers are scampering for the opportunity to lock in some real estate as next year will cost them substantially more, simply because of interest rate rises and reduced government handouts. Given the cost of purchasing real estate many families are sensibly pooling funds to help family members buy the first home. It’s a battle of the wills and the hip pocket.

In summary market conditions do change and sometimes it’s a matter of the right timing to sell. The current market conditions are near perfect timing and it’s certainly not too late to sell this year. If you have something to sell you should move right now and lock in for this year or at least early next year. Marketing in December for a February/March sale can also be a winning formula, although we recommend acting sooner given excellent conditions.

We are providing our complimentary ‘Free Market Appraisals’ for interested home owners and we would welcome your call us for any advice. Please call me if we can be of further assistance directly on 0412 547 291.

ROBERT CLEMENTS
Managing Director