Property Market Update – March 2011

Property Market Update - March 2011Market Update

It was a win for Home Owners with the Reserve Bank of Australia choosing not to raise interest rates when they met in March and keeping them on hold for another month.

With the January floods in Queensland and Victoria, last months earthquake in Christchurch, New Zealand, the 9.0 Earthquake and Tsunami this month in Japan and the increasing tension in the Middle East, it has resulted in a significant amount of uncertainty within foreign markets and the question looms of the impact they will have on the Australian market.

Such uncertainty leads me to believe that while the uncertainty exists and the impact on Australia is unknown, the Reserve Bank of Australia is likely to leave interest rates on hold.

We will probably only see one further interest rate rise this year while the Reserve Bank of Australia assesses the impact of a reduction in global activity.

The full impact of recent events on Australia probably won’t be known until later in the year and I expect the Reserve Bank of Australia to consider increasing the current rate in August/September, however I urge Home Owners to prepare themselves for as many as 3 or 4 increases next year, with a cash rate increase to around 6% in 2012.

On a property front, it is abundantly clear that we are currently in a buyers’ market and I have seen significant reductions in prices by vendors in order to sell their property.

If you are intending to sell in today’s market, you need to be realistic with regards to your asking price and be prepared to sell for less.

Don’t set your price based on what your property was worth 12 months ago, or the additional emotional baggage that makes you believe your property is worth more than its market value.

5 Tips for selling your property in today’s market:

1. Listen to your agent 2. Ask your agent to provide you with some comparable sales from RPData 3. Be prepared to massage your price a little to sell 4. Ensure you and your property are adequately prepared for the sale (i. e. ensure there is no clutter and if the property is marketed as 3 bedrooms, they actually look like 3 bedrooms and not 2 bedrooms and a dumping ground of crap). 5. If you really wish to achieve your desired price for your property, be prepared to engage a specialist to provide you with advice on how to dress your property up for open houses and the sale to maximise the return or hold off selling for better days.

Good Luck with your Sale and Investing and I hope you achieve the results you desire.