Vendor's Message from Milton Rendell - June 2017
The current market is still presenting mixed results in terms of observer activity that being direct inquiry and home opens as an example. No two homes are the same and the inquiry can vary greatly from property to property but it is safe to say the overall activity since Christmas has been slower than many expected.
Today I read in the West Australian that their panel of experts believe the marketing has nearly bottomed and is encouraging people to buy. That is good news but the actual flow on and sediment may take time to see real results in certain areas. The basics of real estate apply greater now than ever before. These basics are price, location and accommodation then mixed with supply and demand. We have seen some small green shoots in the market place but what grows from this we may not see immediately but we will see more in the future.
The talk now of a cooling market in both Sydney and Melbourne may benefit us as investors look outside these two locations for better returns and I think we will see an increase activity with money coming across the border. There may be a small surge on new construction sales before the changes in the first homebuyers scheme which changes 1st July 2017 to a reduced amount of ten thousand dollars for the grant down from the current fifteen thousand dollars.
This may serve as a help to older established home sales where there are still exemptions for first homebuyers on stamp duty for purchases up to four hundred and thirty thousand dollars, we will see. Home open numbers are varying throughout the metropolitan area in terms of people attending but direct inquiry has lifted which is encouraging but still has some way to go.
We are finding the broader the marketing strategy is, inquiry has improved and we see the use of social media being a stronger influence in the future. As I have touched on in previous communications our relationship with you the owner and understanding your goals helps us guide your results as well but we all have to be realistic in our approach to market conditions and this applies to any market.
I think we are entering a new phase in market conditions in the next quarter or so and it will be interesting to see where we are at come early December. Good luck with the sale of your property I know the team are working hard to get things happening for you in what many of us would describe as an interesting market in recent times.
Milton Rendell, CEO & Managing Director
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