Andrew Bell’s Market Wrap: The Reason Behind Current Activity

Issue 24 | November 21st | The Reason Behind Current Activity

Hi, Andrew Bell here and coming to you from a smoky Gold Coast, which reminds us how close we are to so many of the fires in Northern NSW and indeed out in our Hinterland areas. Where would we be without the amazing Rural & Volunteer Fire Brigades who are incredibly stretched in their resources and are fatigued by weeks of fighting these fires whipped up by incredible winds. Our hearts go out to all those affected by these fires and a massive thank you to the army of firefighters

Last week, as part of a national industry Leadership Group, I met with Realestate.com and we got some real great insights into the market at present. What is really impacting on the sharp rises in prices at present is the fact that there are approximately 30 percent less properties on the market for sale than traditionally, and certainly less than this time last year. Whilst, at the same time, buyer enquiry has risen sharply. In October alone, Realestate.com viewings were up 33 percent. An increase of a third of the buyers in a market where we have nearly a third less listings is always going to have a huge effect on prices

Realestate.com’s history as the longest existing digital real estate platform would suggest that whenever buyer enquiry spikes and prices rise, it will entice more sellers onto the market and so it is probable that as we move into 2020 we will see more properties come on the market for sale and the pressure will come off rising prices.

The knock-on affects of this shortage of properties in the marketplace is that we are also seeing less properties purchased for investment purposes. This is also impacting on the rental market in many areas. The Real Estate Institute stats show that vacancy rates across the Gold Coast are at approximately 2%, but our amazing award-winning property management team is recording the lowest vacancy rate I have ever heard in my 40+ year career at just 0.8 percent. In that situation, rents are of course rising sharply as competition for rental properties is driving prices upwards. Investors, you are not going to get a better return in the bank or in the stock market, so let us help you with a selection of excellent investment properties in sought-after areas that we have for sale.

We are in the wind up to the end of the year and a lot of buyers are pressing to secure their purchases over the next week or two because they are wanting to get into their new properties or have their holiday home available from Christmas onward. We have been listing and selling quite a lot of properties in the space of a week; however, a week does not always do a property justice to ensure they have the very best price. This reminds us, we are taking bookings for properties to be part of our legendary ‘The Event’ marketing program for January. Bookings need to be in quickly as we do have a limit on the number that can participate, but this is the largest marketing program undertaken in the country each year and it is an iconic event on the national real estate calendar. For those looking to sell at present, and for those looking to buy and want to be kept abreast of new properties coming on the market check out The Event 2020 or contact our hotline 1800 198 009 or email info@rwsp.net.

Something I have touched on previously is the fact that those who are thinking about buying need to get your loan applications in now. You must go through a broker. You will see in all the annual reports by the “big four” banks at present that they are clearly suggesting they are not particularly interested in processing loan applications themselves and as such, they are taking much longer that one would imagine and are not approving the same percentage that they have previously. However, when the applications come through a broker, and particularly through an experienced broker, all the paperwork is done for them and it is easier for them to quickly approve the loans. Phil Rogers heads up our Ray White’s Loan Market brokerage. Phil will make the process of getting a housing loan the simplest you will get in the industry. Give him a phone today because the banks will be winding down for Christmas soon and you will want to get your loans approved before the busy New Year selling season.

Phil Rogers | 0401 022 182 | phil.rogers@loanmarket.com.au 

That is all for this fortnight. There is lots happening as we surge towards the finishing line of 2019 and open into a whole new decade on 1^st January 2020. So, stay safe, be careful in these challenging climatic conditions, and let’s keep an eye out for one another.

Kind regards,

Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group

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