We think the market has peaked! At least in this area. That's not saying we think it's going to fall but the sale prices being achieved seem to be not too different to three months ago or even longer. House auctions have even started to be a bit harder work for agents (poor us) with less bidders and some properties being passed in. They are still selling but after auction and really not for much more than expected.
The unit market is quite interesting. Some suburbs seem to attract far greater interest than others and while it's easy to sell a house that needs work, a unit that needs work can take forever it seems.
If auction is the way to sell a house, ‘Offers Over’ is the way to sell a unit. Bidding on units that are presented well is creating so much demand that we can have 5 or 6 offers well over asking price within a week. The main driver of the unit market right now is investors. When they go quiet, as they will, this market will be a lot harder.
Updated Monday, 11 May 2015
We left this article here rather than remove it even though we were clearly wrong with our prediction. Actually to be fair, activity heats up and quietens continually even in boom conditions.
The ability to pick when things have peaked requires skills more consistent with clairvoyance than economics. Really what will happen sometime in the future is that one of those quieter periods that we saw last year will stay longer, and when there are pickups, they are shorter and less dramatic. And then the mood will change and real estate will be seen as having had its time in the sun, at least for a while. When that will be, I don’t know but at the time of writing this foot note, the bond market is more cautious, shares have come off and yet we keep on selling and getting higher and higher prices. We live in interesting times.