Saturday saw our first round of open inspections for 2024 and, for a long weekend, it was busy.
We saw between 30 and 40 groups of buyers at some inspections. Strong numbers by any standard.
We always tend to see a bump in inspection numbers and online views in the first few weeks of a new year, as there are more buyers per property until stock levels pick up.
This year volume will ramp up quickly. Our Armadale office is launching 26 campaigns this week, mostly auctions for February 24th. (See the new listings below).
To put this in perspective, 10-15 new listings would be considered a solid week.
This means that there will be much more choice for buyers in the coming weeks, compared to 2023.
With a healthy volume of new listings, the bigger question will be, will demand follow suit?
Will demand continue to outstrip supply, as it did in the first three quarters of 2023, where we saw clearance rates in our market holding above 80 percent and upward pressure on prices?
Will more choice bring more buyers out of the woodwork? Activity tends to beget activity when it comes to real estate transactions. Buyers become sellers and sellers become buyers.
Or will demand not be able to keep up with the increased supply of properties, putting downward pressure on clearance rates and prices?
Great question! We have no idea.
From a macro perspective, there is a chronic undersupply of housing in Australia, matched with record immigration and record low rental vacancies.
Logically, this should create a boom market in the coming years.
But as I wrote about last week, logic doesn’t always hold for real estate and house price predictions are almost always wrong.
No one expected house prices to go up last year while mortgage rates tripled.
In any case, looking at the big picture doesn’t tend to help people when it comes to their individual property needs and decisions.
It’s all about the micro – what is happening in Melbourne, in Stonnington, in your suburb, in your street even, right now?
If you’re buying you are always competing with others in exactly the same boat as you. Everyone wants a great house for a great price. Everyone is applying for loans with pretty much the same interest rate.
If you’re selling you are always competing with others in exactly the same boat as you. Everyone wants to sell their house in a timely manner for a premium price. Everyone is advertising on REA and Domain.
Sometimes you just have to ignore the noise and run your own race.
I try to refrain from giving unsolicited advice via email. But sometimes I can’t help myself!
If you have a good enough ‘why’ to buy and/or sell and the timing feels right, just go for it.
There is no perfect time or perfect house.
You certainly don’t have control over the thousands of uncontrollable variables that impact the property market.
So have at it. Good luck!
Feature Image: 49 Claremont Ave, Malvern
David Sciola 