Published on December 5th, 2012
Number of property listings steady over five years
Figures regarding the number of stock on the market haven't fluctuated greatly in five years, despite global issues.
That's the testimony of Elders Real Estate national franchise manager Brendan Whipps, who said the numbers show there has been steady success within the real estate marketplace.
He commented: "According to the data, in the last 12 months, we've seen between 45,000 and 55,000 pieces of real estate listed as for sale.
"Transaction rates have varied but people are always going to buy and sell property and that is just a fact of life. And over the last five years, listings haven't fluctuated a great deal, they've remained steady between 38,000 and 45,000 which is fairly normal."
What was causing the high volume of sales, with clearance rates hitting nearly 80 per cent, was fear that buyers would miss out. There was a time about five years ago where people would snap up a piece of real estate because they feared six months down the track it would be listed for $100,000 more, Brendan stated.
That concern drove the clearance rate and the rises in property prices because people did not want to pay more than they had to.
The fear has subsided today, Brendan said, as people are willing to wait and see if there is a good deal available. There is no chance of a huge rise in price because the market wouldn't accommodate it.
The golden rule when selling property is that a piece of real estate is only worth as much as someone is willing to pay for it, he added.
What's changed now is that those who felt they could make a profit have left the market. There is certainly a real chance that a vendor can get more than they paid for. But people who thought they should sell because the industry was doing well and the potential gains were too great to ignore are now not around.