Ninja in A Blazer – 19th May 2023
May 18, 2023Ninja In A Blazer – 1st July 2023
July 7, 2023Mini Boom?!?
Congratulations to our Property Management Team
We are so excited and proud of our Harcourts Pinnacle Property Management team who at our recent National Awards Night Celebrating 2022/2023 was awarded Number 2 out of over 380+ offices in Excellence. A little over 12 months ago, as a business there was a big focus put on creating the best property management team out there by doing things a little differently. We would continue to do the excellent property management and tenant work, however we set a goal to focus on building stronger relationships with both our landlords and tenants, priding ourselves in our communication promise. We are not yet at our final goal; however, the implementation has been amazing. If you have an investment or know of someone that is not happy with how their property is being managed, please reach out to us to connect with our team.
Are we experiencing activity levels similar in a property “boom”?
The local market remains strong with active buyers and good sale prices. After a drop of around 10-12% from the market peak in 2022 to the beginning of this year, most areas have experienced gains since March 2023. Some properties are even selling at prices similar to the peak of the market. Buyers are showing interest in properties that need minimal future investment, as borrowing capacities have been affected and they are reluctant to invest in major renovations. They are willing to explore suburbs further out for such properties, seeking a “plug and play” approach where they can move in immediately. Properties requiring significant investment, like a new bathroom, deck, or kitchen, tend to attract more scrutiny from buyers, who may attend multiple open houses before making a decision.
What is fueling this level of activity?
Many buyers and sellers are confused as to why the market is staying buoyant when the interest rates have been raised so many times and it appears to continue to rise, and the borrowing capacity of buyers has been reduced by around 25-30%. From our opinion this “boom” is being driven by the below average number of properties currently for sale (~30% less properties on the market) and a level of Fear Of Missing Out with a proposed record immigration into Australia, lower building approvals, and a very tight rental market.
Is this sustainable?
We’re not economists, so we share our personal opinions. In 2020, buyers expected a 40% drop in property prices due to Covid. Now, many buyers are waiting for the mortgage cliff to get a “good deal”. Some homeowners may struggle to refinance due higher interest rates and loan serviceability requirements (APRA +3% serviceability test). They might consider renting or selling their property to reduce their mortgage payments. As we move into the second half of the year, the market may stabilize, but a significant drop is unlikely.
When is a good time to buy or sell?
We believe there is never a good or bad time to buy or sell real estate as the answer is dependent more on personal situation and reason behind wanting to buy and sell. If you would like any specific or tailored advice based on your personal situation please do not hesitate to reach out to us any time, we would love to provide you with more information that could help you make your real estate decision.
Every wonder what it would be like to work in the real estate industry?
Our last Career’s night was a great success, so we are looking forward to hosting another career’s night at the Aspley Hornet’s Football Club on the 27th of June at 6pm. We are currently looking for sales associates and property managers, however everyone is welcome to attend as the night will give you a great general insight of working in the real estate industry. Register Here
We hope you found some value in this month’s letter and we looking forward to keeping you updated next month, in the meantime as always we are only a phone call away and we can and love to assist you with anything real estate and property related.
