With a massive increase on buyer activity from 2011, so far in 2012 Ray White Cannington has been kicking goals in all aspects of Real Estate in both Sales and Property Management. Although January was a rather slow start for the office (mainly because I had only just returned from a trip to America) February, March and April proved to be bumper months in what has been the best 3 months I have experienced in my time in Real Estate since 2008 (in sales anyway).
January proved slow for sales with a total of 4 for the office, this was countered by a strong rental market with Ray White Cannington leasing a total of 21 properties which included 12 new managements for the office.
February was fantastic, with a total of 12 or 13 sales for the office, Property Management also recorded another strong month leasing out 12 properties.
March also proved that buyers were back in the market, and 8 sales eventuated over the month. Property management had another amazing month with 18 properties leased out, including 8 new managements.
April was also unbelievable, especially for Cameron and Michael with 8 out of the 9 sales for the office as well as selling the new price record for the 6107 postcode for a property under 500sqm. Property management once again excelled, leasing out 10 properties, with 9 of those being brand new managements.
One thing is for sure, Buyers have come back into the market and in the mood to buy! Our total “Days on the Market” average for 2012 is so far sitting at approximately 55 which is roughly 30 days UNDER the average for the whole of Perth.
Over the past 3 months, many of our properties have sold in a matter of DAYS, with our buyer database full of buyers ready to buy multiple types of Real Estate. From builders and developers for Unit & Land Development, Vacant land buyers, and buyers looking for properties with 1 bedroom right through to 4 or 5 bedrooms anywhere between $200,000 right up to $600,000 or $700,000.
Two of the properties sold in April were sold DIRECTLY to our buyer database, without the need to advertise on websites like realestate.com.au or reiwa.com.au or domain.com.au; this gave our sellers a quicker and cheaper way to sell and the best thing was that both properties were sold for FULL asking price. The buyers in the database are already educated, have finances pre-approved and are ready to buy.
Outlook for the rest of 2012
I believe that the year of 2012 so far has not seen an increase in the property market in terms of prices increasing. Yes there are more buyers looking to purchase, but ONLY when the price is 100% right. If they believe they can find better value elsewhere, they will! I believe this trend will continue for the remainder of 2012, high buyer enquiry on property across the board, but with little expected growth.
With the 50 basis point reduction today from the Reserve Bank of Australia, it will be very interesting to see what sort of reduction the major Banks will pass on. If there is full reductions by the banks I will be suprised if investors decisions aren’t bought forward in terms of purchasing property. To have a read of the Chairman of Ray White’s Market Outlook on April and the May Rate Cut click here.