Current Market Conditions - as at May 2012
Since October last year it is very pleasing to report that we have achieved a significant increase in sales volume compared to the same time last year. Buyer enquiry has improved over this period resulting in a 25% increase in our sales volume.
Sales enquiries are strongest for properties up to & including the $600,000 price range but above this level there is a noticeable drop in sales activity. This is particularly evident for properties above the $1 million mark with only the occasional sale taking place.
The strength of the market is based on a number of factors and some of the most important factors are interest rate movements and economic news which has a direct effect on the level of buyer confidence.
The decision by the Reserve Bank in February to leave interest rates on hold may have been disappointing in some respects but it must be remembered that interest rates have been and still are at historically low levels and predictions are that rates may even fall further in the months ahead.
Current market conditions are surprisingly quite good and we expect these conditions to continue for at least the next 3 to 6 months provided there is no significant change to economic conditions.