News........2011 thus far

 
Melbourne Property Market Topsy Turvy!

The Melbourne Property market remains unstable for the first quarter of 2011. In National terms there have been market corrections from 1.5% to 20 %. 

There is no question the property market overheated in the last quarter of 2009 and first quarter of 2010.

Asian Buyers were buying up available stock in large numbers. Clearance rates rose to levels of 83 - 84%, the highest I can recall in the real estate market.

Changes to Foreign Ownership policy saw the market plummet quickly and reducing clearance rates down to below 60%. Settling currently in the 64% region, but with a glimmer the end of the selling season. The first 2 quarters of 2010 were extremely busy with clearance levels r that this will rise gain but over a much longer period.

We still have strong market factors that are in play affecting these include the uncertainty of the Reserve Bank and their stance on future interest rates. Pressure at the lower end of the market where young couples are mortgaged and highly geared. Inflation and employment figures going forward.

The property market in China and parts of South East Asia are starting to slow with an inevitable downturn for Australian minerals and resources, thus the uncertainty in the employment sector. 

Internal infrastructure is not keeping up with demand , and there is evidence the Chinese building boom is about to slow up dramatically.

The Melbourne outlook is slowing, outer region subdivisions are still moving but without the head of steam it had 2 years ago.

Mortgage foreclosure is on the rise and is something to keep a close eye with clients, it's naturally ethical to assist them if possible when the Banks have them under pressure.

ASPC Clearance Rate Highest Since 2003

2011 Has seen ASPC have it's highest clearance rate since our inception in 2003. So far this year we have a clearance rate of 99% of all properties taken to the market.

This is certainly driven by strong market factors, but allowing for this we are approximately 10% over the general real estate clearance rate in the current market.

We attribute this to the Advocacy service itself, by going through the Advocacy process of agent selection and providing a strict criteria for the agents we use we believe it provides the point of difference for not just a better clearance rate in the market but a better price also.

Real Estate is not an exact science and not all property sales and transactions play out the same way. ASPC provide a solid basis of knowledge in our process to ensure the best possible outcomes are achieved.