Market conditions continue to show promising signs. Increased buyer activity has resulted in a rise in sales and a decline in the amount of properties for sale. These would normally be conditions conducive to increases in property values. This may well still occur. My only concern is that there is a large pool of owners/investors who are keen to sell but cannot recoup the price they paid. Any price increases would encourage them to list their properties thereby dampening any impetus for continued price increases. We shall have to wait and see what transpires.
Rental demand continues to glow with multiple tenant applications for properties a regular occurrence. Increases in weekly rents remain somewhat muted however. This probably reflects the uncertainty in the economic outlook and long term employment prospects.
Until next time….