Welcome to my half yearly Bayside suburbs update. This year began strongly with a good first quarter and lots of buyer activity, with increased numbers of listings and a continued lift in property prices.
In June, the market cooled a little, with fewer listings and fewer buyers about. This is fairly typical for the time of the year. On the upside, the buyers who are about tend to be more serious, active buyers. July has seen an upward movement in activity, and I anticipate August will see more buyers in the market as many people want to be in their new home before Christmas.
Here is a summary of property activity in the area:
If you’re considering listing in the spring season, now is the time to be preparing your home. Please give me a call for a free styling consultation to improve presentation ahead of your listing.
CoreLogic RP Data has just released its “Pain/Gain” Report for the December 2014 quarter. The data shows that the vast majority of property resales across Australia (91.4%) recorded a gross profit over the quarter, with 32.3% selling for more than double their original purchase price. The average gross profit across these resales was $251,696. The results for Brisbane itself show that only 93.8% of sales were profitable, and the median profit on sales was $163,500.
Brisbane is showing that 10.5% of properties sell at a loss, while 27.7% of homes sell for at least double what the seller paid. This proportion is the lowest of any capital city, suggesting that Brisbane (in the Dec 14 quarter) still had some catching up to do in terms of people selling homes they have lived in for a long time. Perhaps Brisbanites like living where they are, and are less likely to move than in other capitals.
The highest proportion of Brisbane sales resulting in a loss was between 3 and 7 years. This suggests that if you have a house for 7 years or more in Brisbane, you should be able to achieve a profit when you sell (all things being equal).
Q: Why are some properties already sold when they are advertised online as being For Sale?
A: It is likely that these properties are under contract, but there are certain conditions that need to be met before the property is actually “sold”. These include achieving a satisfactory Building and Pest Inspection, and achieving the Finance condition through the bank agreeing to lend money for purchase of the property. Until these are met, the property could come back on the market and because the vendor has paid dollars to have their property listed online, the agent cannot stop the marketing campaign until there is certainty the property has sold.
During this time, agents will often take a back-up contract just in case the first contract does fall over. This helps provide reassurance to the vendor. That’s why we keep running open homes even though a contract may have been signed.
Recently, a buyer of mine could not raise finance, and so the backup contract won the property. So don’t dismiss properties just because they are “under contract”. Check with the agent to determine if they are actually “unconditional”, meaning the house is sold and just awaiting settlement.
WHAT YOU CAN DO TO IMPROVE YOUR CHANCES OF GETTING THE HOME YOU WANT.
Serious buyers will often introduce themselves to local agents and perhaps use one agent who is willing to act as their “buyers’ agent”. This agent will find the buyer homes for sale in the area.
Many buyers prefer to rely on researching themselves online. These buyers may miss out on new properties coming onto the market, because agents first contact their own database to let their buyers know about new listings before they are formally listed online. This adds value to the relationship between buyer and agent. Sellers benefit from this approach too, because agent databases include people cashed up and ready to purchase. They will then potentially make an offer on a home the agent shows them in advance, before the rest of the market gets a look in.
Another reason why a property is still listed but sold is that the agent has not bothered to take the property down, possibly because it is delivering a source of buyers for the agent. This, of course, is what annoys people.
In order to avoid being disappointed seeing properties under contract or sold when researching online, my advice would be to find a local agent in the area you are looking in and get them to refer properties to you. If they do a good job at that and find you the house you like please go back through that agent, so they can earn a share of the commission for their trouble (most agents only get paid on a commission basis).
From 12 September 2014, there have been a number of changes to school catchment areas in the Bayside. Changes affecting Wakerley and Manly West are:
Gumdale State School
Sections of Grassdale Rd and London Rd towards the Belmont end (Belmont SS)
Section of Tingalpa near Masters – Samarinda St pocket (Tingalpa SS)
Senden Cres and Peregian Close pockets in Manly West (Wondall Heights SS)
Manly West State School
Areas no longer in school catchment:
Hannah Circuit pocket of Manly West (Wondall Heights SS)
Tripcony Pl (Wondall Heights SS)
Faine St (Manly SS)