Sales hampered by constricted supply of houses, price continue to go up

Last month was a setback in sales because of a limited supply of houses, especially in the price range below the five hundred thousand dollar mark. Although this is the case the sales are still strong and steady which shows the continuing recovery of the property market. Compared to the level of sales in the previous year’s house prices maintained upturn in all areas of Sydney and also other regions of Australia.

The whole sum sales of existing homes including town houses, units and single-family homes has dramatically increased at least of bearing minimum one percent since last end of financial year of 2011. The shortages in inventory of particular areas have been developing all year. The slim frail pullback in monthly home sales is more likely because of short supply of houses preferably than pliable demand.

The usual seasonal upward trend in inventory did not happen this autumn, although the house sales have changed noticeably higher with 11 successive months of progress over the same month a year earlier. There are wide-based shortages in lesser price range particularly in western suburbs were the demand is extremely tight. The mortgagee repossession or bank foreclosure and short sales at deep discount is accounted for increased sales inventory. It is most significant to take notice of the advice of your agent and follow all the due diligence that you would normally do in the stabled market, like for example making offers contingent upon an adequate home inspection.

Many of first time home buyers also accounted for increased in sales from previous months and years. Investors who account for major sales purchased which figures reflects a minimal increase of home prices compared from a year ago prices. The existing single-family clad home with decent block of land in Seven Hills area price was in between $360,000 to $ 390,000 and similar property was sold for $420,000 even though the valuation came up $400,000.

The demands for property below $500,000 are extremely noticeable with more buyers waiting to snap a good deal which only proves that market recovery is on its way.

With the report that prices of Australian housing market will continue or can fall in 2012 could affect the people who are thinking of buying or selling their homes.

Buyers that are scared or holding on to buy because of the rumors could end up missing the opportunity to purchase a good home at a decent price. While the seller could end up under priced selling their home or over pricing their property which we commonly express as unrealistic price, both could end up disappointed because of missing the chance to get the deal done.

Ms. Jacqui Valencia, has over 15 years experience as a real estate agent. If you have questions regarding real estate, don’t hesistate to send us your enquiry.

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