05 Aug The Real Estate Market in Salisbury
Welcome to the second half of 2021! Another financial year has passed and what a remarkable year it has been for the property market so far. Salisbury finally witnessed some deserved growth, with some properties increasing by 30% over the past 12 months. This upswing caught many by surprise as a lot of buyers held off buying in 2020 with the hope the market would drop… but clearly this hasn’t materialised. But this challenge for buyers is a gain for sellers!
The main factors increasing the market include:
- interstate migration – the appeal of the Sunshine State is bringing southerners up north,
- low interest rates and readily available finance,
- travel restrictions preventing overseas holidays and as a result, Aussies are using this money to buy their first home or an investment property,
- government construction incentives to build or renovate a home, and
- media positivity about the market which has given buyers confidence to act.
If you are thinking of selling, now is definitely the time to do so! Houses are also selling in record times with days on market around 1-2 weeks compared to last year when properties were taking 4-5 weeks to sell. Townhouses and units are also selling quicker than they have been in recent times, buyers are now looking at townhouses and units as alternatives to houses so we should finally see some nice growth in this area of the market after a fairly flat few years of growth.
We are seeing a lot of interstate investors purchasing houses sight unseen, with some of them offering unconditional contracts, bypassing building and pest inspections and paying in cash. First home buyers are also wanting to purchase in the suburb because of the high growth that the suburb offers and with low interest rates, this is making the higher purchase prices possible for them. Banks are still taking their time to process loan application however, so if you’re a buyer and you need finance to purchase, it is best to get pre-approval before you start your house search, so that processing times are reduced once you have signed a contract. If a property has multiple offers with similar conditions, and the seller is trying to choose which buyer to sell to, they will always choose a buyer with pre-approval than one without it. If you would like to talk to a Mortgage Broker about getting pre-approval, please get in touch for our preferred contacts.
A lot of people are also buying properties that need renovations and using the Government incentives to update their new homes. This can be a fantastic way to secure a property in the suburb at a low price and then renovate it to a high standard and create instant capital growth in the property. Investors are using this technique to create high priced rental properties in their portfolio and are using the rent to offset their mortgage repayments at a lower rate than if they had purchased an already renovated property.
If you are thinking of selling your home and would like some information about the process, of if you would just like to know what your property is worth in the current market, please get in contact with me to receive a free property report, with no obligation to sell whatsoever.