Alliance Real Estate

2020 has certainly started as a year of promise, especially for owners. There’s a historic low number of properties for sale in our local area. In fact, after the first week in January only 44 properties were available when in the past we have noted around 70 to 80 properties for sale at the beginning of a year. Representing an almost 50% reduction, this factor on its own will contribute to upward pressure on prices as buyers don’t have a lot of choice and more competition will result. We’re expecting new first home buyers into our area to particularly focus on townhouses, units and villas, as the federal government’s First Home Buyer Mortgage Guarantee Scheme is now underway from 1 Jan 2020. These new buyers will add to the already strong demand that we are experiencing, creating a ripple effect where buyers will be pushed into higher price bands subject to their access to finance. On the flip side, we’re seeing tougher times for landlords with a record high number of properties available for rent as at the beginning of 2020. After the first week in January there are 141 rental properties for lease. With the first home buyer segment looking to purchase, more tenants will either leave or not enter the rental market. This means rental properties will stay on the market longer and it will be harder for rents to increase. The rental market will only start to improve if banks tighten up their lending criteria and homes in our area become too expensive and out of reach, forcing potential buyers to turn to renting. LIKE TO KNOW WHAT YOUR PROPERTY IS WORTH? Call us today on 9771 6115 for an obligation-free Market Appraisal. Theo Kalinderidis Principal, Alliance Real Estate WELCOME