The month of June has definitely seen the winter months hit us with cold and wet weather in true Melbourne style. The office worked through the month with numbers slightly lower but in line with June in previous years. We are seeing the effects of the budget constraints in the marketplace with things tightening up financially for many in the area. The good news is that interest rates are remaining low and should continue this way for the foreseeable future.
In the sales department we maintained a new listing per day for the month but our sales numbers fell just short of one a day despite a late run in the month. We are seeing plenty of new house and land packages in the market at the moment. This over supply of stock is having an adverse effect on prices across the board. We are also seeing a larger than usual amount of investment properties coming onto the market. The stand out for the month was Chaminda with a very strong listing month and an equally impressive selling month too, representing a PB for Chaminda. Kate also enjoyed another strong listing month as did the Ringeri boys. Sales wise for the month Matt Ringeri had an extremely strong finish.
The rental department had a solid month on the back of their outstanding month in May. The rental market is less seasonal and therefore remained constant throughout the month. The girls completed a record number of 164 routine inspections for the month and whilst this is the less exciting part of the business it is a critical part and it is pleasing to see our team so pro-active and up to date. Many agents don’t keep these inspections up to date and are not providing the service to landlords which can be detrimental to a client’s investment. Rent increases are another vitally important part of our service to landlords, we had the instance this month of taking over a property from another agent that hadn’t completed regular rent reviews and the property is now $80 per week under market. This meant the landlord was missing out on over $4000 per year in income. It was pleasing to note that our team continued to have rent reviews up to date this month with our average rental increase being close to $10 per week.
A number of factors are contributing to the current marketplace. We are seeing plenty of house and land packages on the market and this is something that will continue in our area for a few years to come. Low interest rates are providing a great opportunity for many. We are seeing good tenant interest levels and a large amount of our buyer enquiry is coming from investors. Overall it remains a good marketplace and one that should improve in the coming months.
Until next month
CEO Mark Guthrie