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National home values rise in May, despite tax changes
Over May’s five weekends the Real Estate Institute of Victoria (REIV) recorded more than 3,671 auctions. 2,230 properties sold. 1,552 at auction, with 905 passed in. 677 properties were sold before auction & 1 property sold after auction. The auction clearance rate in May averaged 72.40%. 2,600 homes were bought by private sale.
National market up, but Melbourne eases
Market analyst Cotality reports home values are up again in May in most capitals – Perth, Brisbane, Adelaide, Darwin and Hobart. Regional values are also rising. But values declined in Melbourne and Sydney. Melbourne slipped 0.8% in May and 2.3% over the (March April May) quarter. The more vulnerable sector in Melbourne is the middle to high-end range, where mortgages are bigger and more exposed to rising interest rates, causing some caution among buyers.
Builders tried to warn the government
The change to property taxes announced in mid May’s Federal Budget is still causing headlines. Master Builders Australia, the organisation with the clearest grasp of the home construction and supply outlook, has come out again warning the government that the changes to capital gains tax and negative gearing will adversely effect housing supply. The MBA claims by 2030 instead of 12,000 more homes being built, there will actually be 9000 fewer being built. As the new tax changes compound they will strangle housing construction, not stimulate it. Surprisingly, the Reserve Bank has joined in, linking over-regulation and high migration levels to Canberra’s failure to increase housing supply during its first term (Sydney Morning Herald).
Selling in this winter’s market
Melbourne property has many strengths but one of the best is the excellent value compared with other capitals. Demand for quality properties in May was consistent with auction clearance rates running above 70%. Private sales are strong.
When your home goes to market, the first responders are usually the keenest to buy. The home’s features and location being exactly what they are looking for. Vendor Marketing knows these are the buyers who will also likely pay top price because your property suits them so well.
You will want a certain price and they may offer something lower. These negotiations are normal and having Vendor Marketing’s experience on your side is the safest bet for protecting your interests through the negotiating process. We make sure you don’t undersell, while still keeping the potential buyer engaged.
Advertising knowhow is essential
Vendor Marketing’s principal Craig Knudsen expertise includes previously working as Real Estate Advertising Manager at Fairfax Media. Your advertising has to be highly targeted. More enquiries and potential buyers produces competition for your property and that gets you the best selling price. Our proven marketing strategies flag the buyers who really matter.
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Vendor Marketing’s proven strategies are the best route to maximising your home sale price. Call today and learn more about how we achieve the most successful outcome for you, the seller!
Craig Knudsen
Principal Advisor
Vendor Marketing
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