Spring is often one of the best times to sell a property due to there being more buyers than sellers at this time of the year. This spring is showing varying results with auction clearance rates however it’s certainly an exciting time in the Australian property market.
It appears investors see the property marketas a viable option with share market investors being fearful of greater volatility. A draw-card for investors, despite recent changes to lending policy, is that interest rates are continuing to remain low. It’s also anticipated that fluctuating global share prices and volatility in overseas markets may drive more foreign investors to Australian shores. This is due to the fact that the Australian economy is more stable than most at present, and our capital growth in property is strong. Plus, the Australian dollar is lower than many other currencies, making our property even more attractive in terms of investment. At the beginning of 2015, Australian property price growth rates were around 20 percent per annum, these rates have fallen, but the rate is still high in comparison to 2013 and 2014 figures at around 12 percent.
Auction clearance rates have dropped from the 80 percent mark to 60 percent. However, September traditionally is a slower month for selling. November is the month where a lot more property comes onto the market. For instance, last November there were 11,073 auction listings on Domain.com.au, this compared to 7,138 in August. In 2013, 9,816 auctions were listed in November, whereas August had just 6,454 listings.
Auction Clearance Rates
According to sales data, Sydney and Melbourne auction ratesmoved marginally in the first week of spring. Sydney made a slight recovery, while Melbourne dipped. The national clearance rate rose by one percent to 75 percent. Sydney followed suit with a 75 percent clearance rate and recorded a median sales price of $1.15 million, up from $1.1 million. However, Sydney clearance rates are down by 10 percent when compared to last year’s figures. Melbourne recorded a 76 percent clearance rate, down 3 percent on the last week of winter’s figures. Melbourne’s median sale price was $802,000 up from $795,000.
Brisbane recorded a clearance rate of 49 percent, down from 53 percent with a median of $769,000. Adelaide recorded a clearance rate of 70 percent, a 9 percent increase with a median auction price of $621,000 up from $475,000.
Many homes on larger allotments are being sold above their reserve prices, due to developers buying these homes and then knocking them down to build apartments. For instance, a 4 bedroom home that had been owned by the same family for generations was recently sold for $4.125 million, $425,000 over its reserve. The home situated on a 813 sq metre block was purchased by developers who plan to demolish the home and build apartments. Another home, this time an 8 bedroom property on 3,687 sq metre block in Burwood recently sold for $6.5 million. The same property could have sold for more than $10 million if the heritage-listed home could have been demolished to make way for apartments.
How to Prepare Your Home For Sale in Spring
If you’re looking to sell your home this spring, then there are a number of ways you can increase your sale price and interest in your property. Let’s look at how.
1. Look at your home as a seller – Forget that you are emotionally attached to your home and put yourself in the shoes of a buyer. Then ask yourself, “What do I like or dislike about the property?” Then make small, cost-effective changes if you need to dress your property up or down.
2. De-clutter – Many of us love ornaments, paintings, books and other trinkets. But, when it comes time to sell, less often means more. So remove all of your clutter and let the true character of your home become visible so that it sells itself. This way a buyer sees nothing but a spacious home in all of its glory.
3. Make your garden look spectacular – Cut the lawn, top-up the mulch, weed and prune, so your garden looks its absolute best. If you’ve got gaps in your garden then fill these in with colour or small, but dynamic plants. If you have an automatic watering system then make sure this is working and keep the water up to your plants and lawn, so that they look crisp and fresh.
4. Make an entrance – If the entrance to your home is tired and past its used by date, then take your time to make it look fabulous. Sweep, paint and get rid of cobwebs and any weeds. Clean the windows and dust around the woodwork. Open your curtains and let the light shine into your home so that it is inviting and appealing.
Are you searching for a new home? Then it’s time to discuss your home loan options. Contact eChoice TODAY, and find out how you can save.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!