Periodically, local and global events occur that reduce buyer confidence in the market. The effect of these events is that buyers become understandably cautious about making expensive or life-changing decisions. Buying a property certainly fits into that category – consequently sales numbers and house prices have fallen of late. It’s a perfectly natural reaction.
Once things settle down and the public begins to have confidence in the changes that brought about this nervousness, there is usually a surge in buying activity, with sales numbers enjoying a marked increase and the backlog of housing stock is taken up.
Looking at the number of properties sold across our region in May, it appears as though we may have witnessed such a turn in events, with sales numbers jumping quite dramatically across the suburbs we operate in.
The only glitch in this month’s statistics is the decrease in median prices. However, this is easily explained, as it is usually the middle and lower end of the market that first responds to the change in the market – and it is at this sector that has seen most sales in May, hence the skew in the median house prices.
There are no foreseeable events that would change our view that the market is likely to have settled into a 'normal’ state, albeit cautious, with steady volumes and signs of a gentle upward movement in prices.
At Ray White Damerell Group we are looking forward to continued stability, making a perfect market for both buyers and sellers.
