RRE Properties Winter Real Estate News – Michael Michos

RRE Properties Winter Real Estate News – Michael Michos

Its been a very interesting period for real estate since the beginning of the coronavirus pandemic. For more than 50 years in servicing our area, we have witnessed real estate cycles affected by economic factors however no-one was entirely sure what would happen during the last few months due to an “artificial recession” set back in the market.

Despite some initial dire predictions of a property crash, the good news for property owners is that we are still seeing some very good sales results in our local area albeit with a slight correction in pricing. Clearance rates have risen again over the last month to average over 60% with many sales negotiated prior to Auction. This is underscored by a lack of supply in our area with 30% less properties being offered in the Eastern suburbs for the first half of this year. The first time homebuyer market is particularly performing very well with apartments under the threshold of $750,000 proving to be very popular. Government guarantees for loans of FTHB together with stamp duty and historically low rates are underpinning this high demand. My team and I recently sold 8/14 Barber Avenue Eastlakes at our first open for full asking price and record for that building being $635,000.

In terms of the rental market, we are currently finding higher than usual stock levels in our core markets. Houses that offer a “pet friendly” policy have seen an increase in demand as well as apartments with modern internal facilities. Owners are offering up to 1 weeks rent free in some cases in order to attract a tenancy over comparable rental listings. Our company is now offering free professional photography to all new managements in order to attract tenants quickly to our homes.

With the government stimulus package set to wind back in October, the full effects of Covid-19 are yet to be determined as banks will also cut back on the interest pause for mortgages offered. For the meantime, it seems the general strength of the property market is stable. At RRE we would like to hear from you no matter what your real estate needs may be and offer you over 100 years combined experience from the areas oldest independent agencies since 1966. For more property updates please follow RRE on Facebook, Instagram or subscribe to our mailing list. I wish everyone the very best from my team and a safe winter ahead.

Kindest Regards
Michael Michos – Sales Director RRE