The year has started and the demand appears to be there

Already the ‘boom 2014’ forecasts have been replaced by some predictions of doom.

The fear is investors are leaving the market. Well that's certainly not how I read it as we continue to see buyers making enquiries for potential investment properties. Feeding into that is the fact that we also continue to see pretty good demand for rental properties.

However, I think it’s worth noting how easily the whisper of a bump in the market can start everyone talking and asking questions. It’s a reflection of the Australian obsession with property but talk alone doesn't make it true. Be careful not to jump at shadows.

Our team spends a huge amount of the day talking and when reports surface of negative trends like investors retreating phones run hot. In recent days I've repeatedly said the same thing. Look at what's actually happening now. It's OK out there and I think the fundamentals are there for a good year ahead.

We’ve already had a busy January but it really isn’t until February that people are forced to return to the reality of everyday school and work routine. So the next couple of weeks will be very interesting.

The question is will there be a jump in activity as those people who have successfully escaped over the holidays return and refocus on buying and selling?

I think it’s highly likely.

For example as well as those who took a break from the property hunt over the holidays, I anticipate even more than in past years there will be new players who enter the market having used the break to prioritise and make plans for 2014. The overall economic outlook is simply more secure than the same time last year.

That’s why our team continue to predominantly recommend vendors take their property to auction. The demand is there.

And at the moment we are also increasingly recommending vendors let the auction campaign run through to completion rather than potentially consider even a healthy pre-auction offer.

Again the demand appears to be there so let’s see what happens.

Ewan Morton is managing director of the Sydney based Morton & Morton.

 


Ewan Morton

Ewan Morton

Ewan Morton is managing director of the Sydney based Morton & Morton.

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