Local Market Update

The New Year is well into swing and the busy start is a great indicator of hopefully a positive outlook for 2015. The end of 2014 saw many vendors wanting to take advantage of the hot market and this in the end had the opposite effect, with a flood of stock hitting the market and giving buyers too much choice. This in turn put pressure on prices and auction clearance rates. 2014 saw record auction numbers and despite the finish to the year auction clearance rates remained positive throughout the year overall.

The start of 2015 is looking very positive with buyer enquiry strong and the traditional slow start to the year coming to an end with new stock now starting to hit the market. The first few months of the year we expect to be very busy and quality stock to be short in supply and high in demand. The Australian dollar has dropped but this provides better buying power for those bringing money in from overseas and we expect foreign investment to be strong again this year. Interest rates are tipped to drop again on the back of the lower Australian dollar which will provide more activity across the board. The only concerning thing is our record high unemployment figures and the effect on confidence of buyers in the market.

Overall we expect 2015 to be a very positive and busy year with quality stock as always in high demand. We also expect high demand in the family house market up to $800,000 and most stock under $600,000 for the first home buyers. The apartment market will be interesting this year as Cheltenham takes on a new look with apartment sales increasing and a fair portion of these being sold to investors. Rental activity remains strong with interest in a wide range of properties. Units, houses and apartments are in high demand with well-maintained family homes remaining the most desirable.

Until next month,
Mark Guthrie
CEO – Ray White Cheltenham