It has been a willing start to 2013, after what was a tough 2012. Interest rate cuts of last year have finally worked their way through to improved affordability and confidence, with the result that days on market for Ray White Belconnen have fallen from well over 60 to be back around 35 days.
Clearance rates have also improved, with Ray White Belconnen February in room Auctions (held monthly at the Belconnen Arts Centre) seeing 3 out of 6 Canberra properties sell under the hammer (50%), and March seeing 5 out of 7 sold (71%). This result is tracking well ahead of the Canberra average (currently ranging between 35%-45%), but consistent with improvements across the country.
The positive sentiment (reserved mainly for the housing market) suggests to us that there may be some momentum returning to the Canberra housing market, however we remain cautiously optimistic given that according to SQM Research, in February Canberra was one of only two capital cities (together with Melbourne) to record an increase in stock levels (up by 2.1% on February 2012 and 8.5% on January 2013). This means that whilst buyer enquiry is up it has not yet reached a level to absorb new stock coming onto the market, and suggests that price growth will remain limited in the near term.
To find out what impact these changes have had on your property, click here to request a free market appraisal.