For the first time in well over a year, the Devonport market has reverted to its normal modus operandi – at least for December, and this is reflected in the buoyant behaviour of the market last month .
The Speculator’s research reveals that historically, around 50% of houses sold in Devonport are sold to buyers already living in Devonport. Moreover, there tends to be a pattern to these purchases; that is, people living in Devonport will often re-purchase in Devonport but in a more highly-priced area.
This month’s life in the market is a clear depiction of this historical flow. A particularly high number of houses sold in the lower price bands, and at least some of these buyers re-purchased in Devonport in more expensive houses, pushing sales in this sector up as well. It is this double jump that boosted the market in November.
Twenty houses (south of the golf course) sold, at average rate of sale price over RV of 6%. Average time to sell plummeted from over 100 days in October to 63 in November. Two of those numbers – 20 and 6% are the highest we have seen in their respective measurements in the last 12 months. Time to sell isn’t far off either.
The prices being paid for houses in the more expensive tier are still highly variable, with some properties selling below RV, some well above. Those selling in the lower tier however are getting some excellent prices; four sold well into double figure percentages over RV.
All of this excitement is a far cry from the market 12 months ago, when the market was bumping along the bottom and buyers were nabbing some amazing prices in the upper price tiers.
The market has strung together a few months of relatively positive activity; while volumes have been low prices have been increasing, suggesting agents are seeing more buyers in the market and are telling their sellers to hang on for a bit more.
It’ll be interesting to see if the buyer interest is maintained at this high price level, although with Xmas around the corner, we may have to wait a month or two to see what eventuates.
2012 promises to be an interesting year; central banks on both sides of the Atlantic have been printing money to fill the debt hole that has grown to several trillion dollars deep. This is not good news for all those baby-boomers who are now looking to their retirement with increasing anxiety, as the fear of their pensions being vapourised by either hyperinflation or financial collapse take hold.
Tips for the holidays; keep an eye on the yield of long term (10 year) Italian government bonds over the next couple of months. If they head to around 7% and stay there or go up, Europe will be in serious trouble. Also keep an eye on the strength of the Euro against a basket of other currencies. If these two indicators move in opposite directions, the markets are indicating they are abandoning Europe.
Alternatively, you could just ignore the whole kerfuffle and enjoy the sun!