Spring is usually a time when the property market flourishes and it looks as though this spring could be the same. There are the usual factors which improve buyer sentiment such as the uplift in people’s moods when moving from winter through to spring, the gardens in homes and units looking their best and ready for showings, and the desire for a revitalising change to happen such as spring cleaning, a healthier eating plan or a new fitness routine.
When these usual factors are coupled with other external factors it paints a good picture for the spring property market. Interest rates in Australia are at a record low so money is accessible to property buyers. The government is still incentivising first home buyers with grants of up to $15,000 and stamp duty exemptions which can be valued at approximately $20,000. With the 2013 election behind us, buyers can move past the election uncertainty phase and feel more comfortable and confident with the state of the government moving into the future. Then there’s Christmas and both buyers and sellers wanting to complete their purchases or sales before the end of year, the often self-imposed ‘Christmas deadline’.
The property market has experienced good growth over the last 12 months and spring gives sellers a chance to capitalise on the year’s growth and, in many cases, attempt to extend upon this growth. Research from RP Data shows that houses have been a good investment in many states over the last 12 months with the median house price in Sydney at $645,000 (up 7.3%), in Melbourne the median house price is $530,000 (up 4.4%) and in Perth it’s $510,000 (up 8.8%). Apartments in Sydney have increased in price by 3.2% in the last 12 months with the median price of $500,000. The median unit price in Melbourne is $435,000 (up 3.1%) and in Perth the median unit price decreased 1.6% to $415,000.
During spring, buyers should be aware that the increased market activity can push prices up. Buyers should also keep in mind that if they miss out on purchasing a property this spring, summer is often a much quieter period with many people on holiday and those who didn’t sell during spring will often be more keen to make a sale.
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