2011 Trends

Looking at 2011, there are a number of trends that look likely to influence the residential property market.

Interest Rates

Residential Real Estate prices have most certainly stabilised over the last six months of 2010. Unfortunately the same cannot be said about home ownership. As a result of multiple interest rate rises, which have not been matched by higher incomes, the affordability of housing has been substantially eroded over the last twelve months. It is widely expected that interest rates will be increased several more times over 2011 which will further put housing affordability out of reach for many. Some reasonable news is that suburbs at or below the median will increase in popularity.

Auction Stock Levels

The latter part of last year saw property auction clearance rates drop to around 60%. This event would seem to suggest that home owners that have intentions of selling in 2011 will trend towards the private sale process. If less auctions proceed then the competition at the auctions that do occur will increase.

First Home Buyers

A 20% reduction in property stamp duty has been promised from July 2011. This event is expected to see a minor increase in first home buyer activity. Any further interest rate increases are likely to erode most of the benefit brought about by the stamp duty reduction.

Victorian Population

The gap between available dwellings and the population growth continues to be substantial. It is expected that no improvement will be seen in the size of the gap in 2011. This event will continue the on going pressure on all segments of the housing market.

Australia Our Home

Australia remains to be one of the world's leading countries for property growth. We beat countries like the USA, UK, Japan, Sweden, France, Germany, Canada, Italy & Spain during 2010.

Underpinning Australia's growth in property values is low unemployment rate and very tight housing supply. It is also indicated that the resource boom and our relationship with our Asian neighbours will continue to ensure a solid pace in domestic activity.

It appears that a decision to invest in your own home still remains a solid strategy, and historically, Australian real estate continues to outperform many other asset classes.

MPC – Tips

Now that you have considered selling your property, its presentation is of the most critical importance. Excellent presentation has the potential to bring thousands of dollars more for your property, especially if the "WOW" factor is brought out properly.

In a competitive market if two houses are similar but one of them is presented better, then it is obvious which one will leave a better impression on prospective buyers.

It may pay to call in a professional consultant that will advise on:

• Design Elements
• Colour Tone
• Symmetry
• Flow
• Display Furniture
• Improving On Current Presentation

Often simple things like decluttering, moving / removing furniture, repainting / painting a feature wall to add some depth and adding, removing or repositioning mirrors make a big difference for little effort.

Consultants often will charge $200.00 per hour but may add thousands to the sale price of your property. They should also be able to quote you on rental of display furniture for the duration of the sale process.