The residential property market can sometimes be a confusing space to navigate, especially with the media attention it often generates and receives. The views of property commentators, as well as the constant flow of data released, often appear to be conflicting, with the media conveying sometimes contradictory signals to buy, sell, or hold.
I consider myself fortunate to be in the position I am, as I have access to our internal company data as well as the experience and opinions of the thousands of real estate agents in the Century 21 network, who are spread right across the entire country. Having contact with such sources allows me to keep a firm grip on what's happening in the market, in both capital cities and rural areas.
At the moment, with the conditions that we're seeing across the national market, it is my feeling that those who are ready to buy are positioned quite nicely. According to internal Century 21 data, which is a reflection of all Century 21 offices across Australia, residential sales volumes are down of late – we have seen a decrease of 30 per cent from where they were around this time last year.
And with transactions down, there are still significant levels of stock on the market; our figures indicate that there are approximately 67 per cent more properties for sale across the national Century 21 network than there were at around the same time last year.
Add to these figures the findings of the recently released RPData-Rismark Home Value Index, which saw a national decline of 1.3 per cent in capital city home values over the quarter to February 2011.
So what does all of this mean for buyers? The fact that property transaction volumes are down could suggest that the market is currently wary and approaching purchase decisions with some trepidation. If this is the case, then we are looking at a period where demand is low, which ironically can help to create favourable conditions for buyers. The levels of competition that would otherwise need to be contended with are lower, which allows for some breathing space when it comes to making a decision, as well as giving you room to negotiate on price.
And with the Reserve Bank of Australia deciding last week to keep interest rates on hold for the next month at least, buyers who require financing have another window of opportunity to obtain mortgages with favourable interest rates.
It would appear therefore, that the property market in its current state may hold some good opportunities for those who are in a position to make a purchase. I would suggest that these people make the most of this period and devote some time to researching and comparing the various properties and financing opportunities that are available.
Remember that our Century 21 real estate agents all over the country are happy to answer any questions you may have about the properties that are available for purchase and general market conditions in your specific area.