Buyers should get cracking in 2017 or risk paying more by April: property experts

[Realestate.com.au]HOME hunters should dive straight into the property market when it kicks off again this year — or risk paying the price.

That’s the message from Wakelin Property Advisory director Paul Nugent, whose top tip for those looking to get into Melbourne’s hot market was simple: don’t procrastinate.

“The Melbourne auction market remained unusually active right up to the final weekend of the year,” he said.

“This augurs well for 2017, as our experience is that a late end-of-year run invariably heralds a good start to the following year.

“If you are a prospective buyer, don’t make the mistake of waiting to see what happens in February and March before jumping in.

“You may find that property prices are 5 per cent higher in April than they finished 2016.”

Mr Nugent added buyers shouldn’t get caught up in offshore affairs, such as Trump policy, and instead prioritise what they could control.

“Focus on selecting high quality property with a track record and propensity for capital growth,” he said.

Mr Nugent said in-demand property types in inner and middle ring suburbs should record solid capital growth of about 5 to 10 per cent in 2017.

“Underpinning this view is evidence of persistent buyer demand off the back of lower interest rates, and a shortage of stock on the market,” he said.

“This shortage of stock is essentially the result of four years of buoyant sales volumes exhausting the pool of discretionary vendors.

“Eventually, one would expect potential sellers to respond positively to the price growth signal out there, but it hasn’t happened yet, and it may not eventuate until sometime in mid-2017.”

Lower-demand properties such as high-rise CBD apartments and outer suburban areas would see little growth, Mr Nugent added.