A surge in the numbers of new property listings is the dominant trend influencing South Australian property markets, while first-time buyers are making more moves.
“We had a 40%+ spike in listings in July across our network compared to July 2018,” said James Trimble, General Manager, Raine & Horne. “In August, more of these listings started converting to sales.”
The robust sales activity is more spectacular as it is occurring in the coldest months when markets traditionally experience a lull. James said, “The election cruelled activity in autumn. The strong winter market is a reaction to the pent-up demand as fearful buyers sat back and waited for the May federal poll.”
In Strathalbyn, the combination of political stability, lower interest rates, and reduced bank lending buffers, has since encouraged first home buyers into the market for the first time in a year. “APRA’s decision to allow the banks to drop their interest rate buffers has enabled some first-timers to borrow as much as $50,000 more than three months ago,” said Nick Grosvenor, from Raine & Horne Strathalbyn. “Consequently, we are making more sales to first home buyers who were previously looking at affordable homes in suburbs such as Mount Barker.”
In recent times, Nick has sold a neat 4-bedroom, 2-bathroom home set on a spacious 851 square metre block at 11 Parker Avenue, Strathalbyn to a first-time buyer for $385,000. The star agent also sold a well-equipped family home at 23 Hooper Road, Strathalbyn for $305,000 to first-timers.
Nick explained, “Since the election, it’s like a switch has been turned on in the property market. Also, savvy first-time buyers are recognising that given the lending changes, they can get ahead of the game by borrowing more money and paying off their bigger mortgage faster.”
With vacancy rates at all-time lows below 1% in Strathalbyn, investors are also starting to make their presences felt in the entry-level markets. “First-time buyers need to make a move now before investors start to flex their financial muscles by snapping up well-priced entry-level properties in Strathalbyn.”