Ray White Point Clare

When you look at the statistics though, the numbers truly tell the story. In 2019 our average sale price for the calendar year was $661,454. Whilst 2020 essentially started quite late with the outbreak of Covid, the market started to kick into gear in spring and we finished the year with an average sale price of $748,013. Already a marked increase over the previous year despite the disruption of the pandemic. However, the jump in the next 4 months would prove to be truly mind blowing, as in 2021 so far our average sale price has risen to $916,458. That represents a $255,000 increase in average sale prices in our local area in just a 2 year period. Now of course, that is just the average. Certain standout properties attracted higher levels of interest than others, with many breaking through the $1 million barrier and setting records in the process. So I think we can all agree that we’ve never seen a market quite like this. The next question though on everyone’s lips is when will it end? The answer, we feel, can be found in the population data. With no immigration and a lower than usual birth rate this is the first year in our nation’s history that our population has in fact declined. So if this level of demand is being experienced from our current declining population, one would have to assume that things will only continue to heat up once immigration resumes and more and more expats return home with the benefits of foreign currency conversion adding to their budgets. Whilst the possibility of intervention from the RBA or APRA to slow the market seemed likely for a while, the RBA has reiterated its stance to keep rates at their current historic lows until at least 2024. So there really appears to be no end in sight to the current market conditions. Naturally as owners’ expectations rise to meet recent results we would expect to see properties selling for less shocking amounts over their asking or reserve prices, but selling for high prices nonetheless. The good news is for those buying and selling in the same market there will always be opportunities to sell high and buy better, as there are always deals to be had from seeking out poorly presented properties or owners who value a fast sale over the absolute best price. Our advice would be to take the time and effort to truly maximise your sale price first, and then be in a powerful position to make unconditional offers on your next property. As always, for advice on navigating the current market please never hesitate to reach out for a chat. Andrew Macdonald Principal Ray White Macdonald Partners – Point Clare