Property markets nationwide are already experiencing a spring surge after better than expected winter results, according to real estate group Ray White.
Ray White deputy chairman Sam White said the group had achieved record results in some states during August and there had been above average auction clearance rates in all capital cities this month.
“The market, particularly in Sydney and Melbourne, has fired up and we are seeing many properties selling well above reserve,” Mr White said.
Ray White in August recorded its greatest monthly residential sales result in Victoria with sales statewide topping $400 million, a 55 per cent improvement on August, 2008.
“The residential market in Victoria is running hot for us,” Mr White said.
“And there’s definitely been a surge in activity in the middle end of the Sydney property market in the $500,000 to $1 million price range. A major contributor to this development has been a shortage of properties under $500,000.
“The boosted first home owners grant has been highly effective in bringing new people to the property market but the number of first time buyers is starting to drop off with the expanded grant scheme to be phased out from the end of September.
“The shortage of stock has put a lot of pressure on the middle end of the market.
“Investors are back and cashed up second and third time buyers are now looking to upgrade to larger properties priced over $750,000 and sometimes even over $1 million.”
Mr White said the property market was expected to remain buoyant through spring, with November traditionally the biggest selling month.
“The Reserve Bank of Australia keeping official rates at 3.0 per cent will also be beneficial to the residential real estate market and we should see more stock and a highly competitive environment in the lead up to Christmas,” he said.
While Ray White has performed strongest on the eastern seaboard, sales in Western Australia have also been bullish heading into spring.
Ray White’s sales in August totalled $660 million in NSW, a 42 per cent rise on the August 2008 result, with WA just behind following a 38 per cent improvement.
It capped off a strong winter residential sales performance with the group achieving sales of almost $450 million in WA during June, July and August 2009.
In Queensland, the group’s statewide sales for August, 2009, totalled $630 million, compared to $461 million in August, 2008 – a 37 per cent increase.
Ray White recorded a nine per cent rise in its residential sales performance in South Australia and the Northern Territory last month compared to the corresponding period in 2008.
The group achieved sales of $370 million in SA/NT during June, July and August 2009.