Local Market Update May

Local Market Update

May was action packed for the team at Ray White Cranbourne, from the state-wide “Rent Event”, to the record breaking activity in the sales department. Some talk on the street predicted doom and gloom, but we continued moving full steam ahead.
The sales department again increased productivity, exceeding 40 listings, 40 sales, and setting a new record in both numbers and dollar value, with over $16 million in homes sold for the month. It was a true team effort with personal bests being recorded by, Chaminda Gunasekara, and, Kate Rushton. Well done to the team for all the hard work and happy clients.

Winter arrived early on Friday 25th of May, but the rain didn’t dampen the spirits of our enthusiastic property management division or crowds participating in our annual Rent Event. With 20 properties proudly on show, our leasing department registered strong interest from quality applicants and contributed to their efforts in letting 29 properties for the month.
With another 40 quality rental properties currently on our books, the 3977 postcode is offering great choice for prospective tenants. These numbers are the highest we have seen in years and this over supply is unfortunately putting downward pressure on prices.

The removal of the “First Home Buyers Boost” in the State’s budget for 2012/13 is already impacting land sales. The State Government’s incentive to buy land and build will be replaced with stamp duty incentives for all first home buyers – good news for those entering the market and not wanting to build.

May concluded with land stock levels at an all time high, with some owners taking a drop on what they previously paid to secure a sale. More estates are expected online in June, and the oversupply will continue to have a detrimental effect on prices in this sector.

Low interest rates and the speculation they will drop further, is still proving an incentive for buyers to enter the market, and in some cases, for buyers to spend more than previously which is good news for our vendors. Banks however, remained conservative with lending in May, and finance approval is still an issue for some buyers. If you or someone you know falls into this category, Ray White Cranbourne’s Loan Market Representative, Josh Bartlett, is available for obligation free advice on borrowing rates and a range of products.

To assist with a busy yet challenging sales climate three new staff were inducted to the sales force during May. Welcome to, Julie Wood, Braden Jarrett and Thomas Aloysius. We wish them all the best and we will be supporting their success with ongoing mentoring from our full time sales coach, Leigh Donovan.

Until next month, stay warm and dry!

Mark Guthrie – Director
Ray White Cranbourne
0404 001 347