Principal’s Report, December 2017
Our local real estate market has been going very well with buyers snapping up opportunities at or above asking price. Our auction of 59 Government Road Nelson Bay had 9 registered bidders fighting for the property and a brilliant end result of $568,000 which was $48,000 above reserve! Prices are continuing to move upwards with buyers willing to pay premium price for the right home.
The big gains in Sydney have resulted in many buyers seeking a lifestyle change and finding value in our area. This has pushed our prices up as those Sydney-siders use their dollars or equity and bring those gains to the Tomaree Peninsula.
However, we are now seeing a decrease in the Sydney market which will have a flow on effect for our area next year. The banks are hesitant to lend on some properties and interest rates won’t remain this low for long. Recent figures have seen the amount of properties selling at auction each weekend in Sydney from over 80% down to 65%. That is 1/3rd of properties being passed in at auction, maybe some of those vendors need to realise the market is changing.
What does that mean for our area? We will be hitting our peak in the next 6 months, then we will have a harder period after the end of the 2016-2017 financial year. Right now is the peak time for anyone looking to sell, particularly over summer when a lot of Sydney-siders are in the area.
This is also a great time to lock in your home loan rates.
Our Loan Market Broker, Heath says: “After changes made by the regulators, rates have been relatively steady recently as lenders seem to have worked out where they sit with restrictions on Interest Only and Investment lending. Those that have a bit of room to move in their capped lending still have some good rates available in these areas and it’s a great time for investors to see if they can potentially improve their cash flow and even look towards another investment.
There are some great fixed rates available still, with the experts predicting possible rate rises next year, now could be the time to look at fixing your interest rate and protecting yourself from a rise in the near future.
We have fixed rates available from 3.69% at the moment and have seen an increase in clients choosing to fix their interest rate for peace of mind knowing their repayments will not rise during their chosen timeframe.”
In our office we are still seeing great results from sales and we need more properties to sell to take advantage of the premium prices we are seeing at the moment. We offer free, no obligation, appraisals and mortgage health checks to owners as part of our commitment to keep owners informed and up to date on developments in the local market. Being armed with the best information helps you make the best decisions for your future.
To take advantage of these offers just call or email us to let us know you want an appraisal or a home loan health check.
From all of us here at Ray White Port Stephens we wish you the very best Christmas and a magnificent, happy and safe summer!