Have you started planning for spring?

It has been a strong few months in the local market, with much of the action happening at the negotiation table. It has been a true test of mettle for real estate agents as buyers have registered some reluctance and trepidation. This nervousness is a result of worries in the marketplace, with much of the media reporting a “softening” or “correction” across Melbourne. In response, average days on market has increased as buyers spend more time deliberating over their purchasing decisions, and agents spend more time negotiating and pursuing qualified buyers.

With all that said and done, the latter part of Winter has been surprising in its steady, constant stock levels and robust price outcomes. Now more than ever, being priced right, marketed right, and presented right is of upmost importance. These can be difficult times for agents who simply ride on the market peaks (you know what they say about the going getting tough). You will find that agencies which are tried and true, like Integrity Real Estate (having been in operation for over a decade) do not depend on the weather or tremble when the media touts doom n’ gloom.

Speaking of doom n’ gloom: in August alone, the reporting giant Domain.com reported a “Volatile Melbourne auction market” throwing up “hits and misses” (due to a 58% clearance rate) while Realestate.com.au reported a weaker median house price of $502,500 and average rent per week $380 (in Kinglake). However, you will see the flaws in this reporting when you compare them to other sources. For example, and on the contrary, Property Data Online has reported an August median of $550,000 in Kinglake down from $570,000. On the topic of auctions, a homeowner wondering the “state of the market” in Kinglake will learn nothing from an article about dropping auction rates in Caulfield.

Herein lies the problem with data reporting: it depends on the amount and value of data that any one organisation has.

Although it is hard to believe, the sales registered on Realestate.com.au and Domain.com may represent a large piece of the pie, but they’re not the whole dessert. When it comes to CoreLogic and other sources, even they are at the mercy of the agents who they rely upon for accurate data.

This means that you must apply a fairly heavy pinch of salt when digesting online articles regarding growth, medians, and averages. At the end of the day, it is the local agents who know the best about their area, for in real estate there are markets within markets.

On the topic of data, a report worth looking at is the owner-occupier data from the Australian Bureau of Statistics census in 2016. According to the ABS, the Kinglake Ranges records a high 88% of owner occupiers in the region. This is 88% of the total regional population who live in the home for which they are mortgagee. This agrees with the demographic increase in young families looking for lifestyle changes. It is surprising, given the high numbers of rental properties in the area, and strength of the rental market—it simply goes to show that our region has a higher population than often thought.

88% of owner occupiers in the region proves that people buy with the intention to stay. Although property turnover may be due to changing personal circumstances for some, by and large, the majority of homeowners make the move to the leafy, peri-urban Ranges for the same reason: lifestyle.

Come spring, this is what we will be pushing.

If you are a homeowner considering selling in the Spring, look up and ahead, instead of on jaded winter reports talking about the “market downturn”. Any buyer reluctance will fade as the big 4 banks settle again after the turbulence of the EOFY and royal commission enquiry into bad practice. Rumours of the “bubble bursting” will peter out as real people with real needs start to evaluate where they want to be. Young families planning a long term move will start to search in the Kinglake Ranges. The couple who bought in Doreen ten years ago will, prompted by fair September weather, remember why they were attracted to their area before the Urban Growth Boundary encroached—they will start to search for small acreage and large residential blocks one hour out of Melbourne.

When this flurry of interest peaks again, it is important that the most in-tune, the most persuasive, the most proactive agent is on the crease batting for you. Get in touch to discuss your requirements today so we can tailor a marketing campaign that is right for you well in advance. Let’s be prepared when Spring rolls around.