2 Dec 2015 By: Greg Hocking 0 Comment
Want to know what has the biggest impact on the housing market?
Interest rate movements, government policy changes and migration all influence housing values and sale volumes. The biggest influencer; the thing that swiftly makes a mediocre market an upbeat one, or turns a bull market into a bear is confidence. It is how consumers feel about their real estate market, the future and housing values. Headlines using emotive words like ‘boom’, ‘bust’, ‘bubbles’ and ‘crashes’ impact confidence. Inject consumer confidence into a fundamentally stable market, such as ours, and you see buyers in their droves. Confidence quickly restores even the most slumped market. For example, in late 2008, the global financial crisis reduced weekly auction clearance rates to 50% yet by March 2009 clearances had returned to 70%-plus and by Christmas 2009, Melbourne’s property market was enjoying boom-like conditions. The turnaround, quite simply, resulted from a feeling of unstoppable confidence.
I raise this because, as the world reels from last month’s Paris tragedy, it is human nature to pause after devastating events. Some will now wait until 2016 to enter the market. Nevertheless Victoria’s housing market fundamentals remain strong and property prices continue to rise and we remain confident this summer will reward informed buyers and vendors.
Call us today to discover how we can help you achieve a premium property price.