2016 will be remembered as the year that the Darwin property market underwent a large correction. It was reported by the Real Estate Institute of the Northern Territory (REINT) to have the least property transactions since they first started recording in 1999. The first three quarters of the year showed a downward trend which saw house prices fall 6.2% between September 2015 and September 2016. However there was a glimpse of hope in the last quarter of the year with Corelogic reporting a 5.9 percent increase in house prices which suggests that the market is starting to strengthen.
At Real Estate Central we have seen more activity towards the end of the year with an increase of people through our open homes, property enquiries and also in our sales. December was our best month of the year for properties going under contract. Sales Professional, Michael Van De Graaf said that historically at the end of the year it usually quietens down with buyers losing interest over the holiday period however this year we have seen more activity.
A contributing factor is the introduction of the First Home Owners Grant. Sales Professional, Stewie Martin said “I have noticed at my open homes that a big segment of the market lately has been first home buyers, most of them ready to buy in the New Year. Now is a great time to buy as it looks like the slowest part of the market is behind us. You don’t know it’s the bottom of the market until it goes up and we have now seen a solid effort of house prices firming up. Although we have seen some positive growth, the market is still price driven and vendors still need to expect realistic prices.”
Despite a challenging year, Real Estate Central continued to sell more properties than any other agency which has continued from the past 5 years. Since introducing our Friendly Auction system in August 2015, we have seen properties sell sooner and we have also received some great feedback from both sellers and buyers. The process has made it easier and more transparent for both parties. If you would like to find out more about our Friendly Auctions, feel free to contact us or come along to one of our auctions.
2017 has started strong for the property management department where we have seen a lift in enquiry levels and leased more properties than expected already for the month. Although the market is still price sensitive, a lift in enquiry levels is a great start to the year and should see our vacancy rate reduce.
Real Estate Central would like to wish you a Happy New Year and thank you for your support in 2016.
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