Well maybe not your house as Barnaby Joyce has discovered recently…
We made a promise when we first started Independent Perspective to keep you up to date on what is really going on in the Canberra market. We don’t want you to have to rely on statistical interpretations from interstate analysts based on activity that is several months old.
There are lot of really positive signs coming out of the Canberra market right now that are either being ignored or overlooked by some commentators. Here are some key figures, based on real people and actual properties, you should know about:
15% increase in enquiry.
We had over 23,000 visitors to Independent Property Group open homes in 2014. That’s a lot of people. Which is why it is great to see the number we had through homes each weekend in January grow significantly in what is often a quieter month of holidays and people getting back to work. This increased enquiry also translated to 15% higher monthly sales than the 2014 average, so buyers are clearly motivated to act.
33 days from listing to sale.
Allhomes.com.au reported in December that across Canberra it was taking an average of 64.2 days to sell a house and 90.6 days to sell a townhouse or unit – which was actually down from 73 and 96.9 days a year earlier. Due to Independent Property Group’s whole of agency approach to sales and marketing; our corresponding figures in December were only 33 and 42 days. Coupled with increasing enquiry rates, this is a predictor of strong buyer demand as 2015 progresses.
48% of buyers purchased their first home.
In our predictions for 2015 we said this would be the year for first home buyers. While we would not expect these percentages to continue for the whole year, attractive prices, increased choice and high levels of affordability are encouraging new buyers, particularly young couples, to take the plunge into home ownership and future financial security. Just for the record, 46% of those who purchased a home through Independent Property Group in January were aged between 25-35 years old.
Clearly this is just a monthly snapshot and no doubt these statistics will continue to evolve throughout the year, but they demonstrate a very positive start. Which is why, in light of these encouraging figures, it has been disappointing to see that published commentary on the local market has either carelessly or deliberately avoided what is happening on the ground. Instead, commentators choose to focus on monthly median price changes that are at best indicative; and depending on volume and demographics, can be quite distorted from what is really going on.
Property cycles generally run for 5 to 8 years and in this time owners will experience solid growth ahead of inflation provided market fundamentals remain strong. As they have remained this way, despite short term fluctuations, for over 40 years and Canberra sales have experienced sustained demand despite the pressure on the public sector over the last 2 years, there is plenty of room for optimism for current and future home owners.
We confidently predict 2015 will build on this great start, leading to increased consumer confidence, which is important to all of us.