November Property Market Performance Continues Fragile Trend

Posted by on Dec 21, 2010 | Leave a Comment

The Devonport housing market continued to suggest it might be on the point of stirring, with a reasonable number of houses selling in November at an average just over their RVs.

Twelve houses sold south of the golf course for around 0.9% on average of their RV; while average time to sell was at just over two months. While 1% might seem small, it is only the second month since March to make it over the zero mark (the previous being June at a towering 1.4%). So average volumes at improved prices.

However, if we split the market into two segments which reflect the different demographic zones  in Devonport, a slightly different picture emerges.

What we see is that the $1m plus end of the market had been doing the damage to the average, while sub $1m properties were doing better. In fact, the sub $1m market had been consistently achieving prices above RV – in the region of between 3 and 9%, while the last time the $1m plus end of the market was achieving results averaging above RV was November 2009 – 12 months ago.

However, in what must have been the market’s nadir for some years, in September and October both market segments plummeted below RV, with a couple of big hits in the sub $1m market taking the average down to -7% of RV for both months. It was no surprise that a number of smaller estate agents around the Shore went under during this time.

Nevertheless, the word on the street is that there are a few more buyers around, and a couple of them bought over the $2m mark, although the sale prices weren’t far from the house’s RVs.

But as the graphs demonstrate, a clear trend is emerging; and that trend is upward. We’ll have to wait and see the extent to which this trend is suppressed over the traditionally quite Xmas break.

ScreenHunter_06 Dec. 21 00.52

Number of sales data: by month and two month moving average.

ScreenHunter_07 Dec. 21 00.52

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ScreenHunter_06 Jun. 16 13.54

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