The CEO of Victoria’s leading real estate group believes a 30 per cent upswing in the April figures is a strong indicator of a market recovery being driven by increased consumer confidence.
Mike McCarthy, CEO of the 80 plus office Barry Plant network, said last month’s higher than expected rise in both the number and value of sales followed on from an outstanding first quarter result.
“We have just finalized our April results and it shows a year on year increase of 31.7 per cent in the value of sales and 26.9 per cent in the number of sales compared to April last year,” he said.
“Our first quarter results saw a 13.8 per cent increase, which gives an increase for the first four months of the year of 18.1 per cent in the value of sales and 17.3 per cent in the number of sales.”
Mike believes the results are a strong indication of a recovery in the market which is being driven by a resurgence in consumer confidence.
“The recovery in the market is not being driven, thankfully, by big increases in prices, as the average value of homes sold by the group during this period was only 0.7 per cent up when compared to the same period in 2012. It points to a recovery in consumer confidence and an acceptance that we are now in a relatively stable market compared to the last few years, which means that many people are now deciding to move ahead with their home selling or buying decisions.
Mike said that Barry Plant Agents have noticed an upswing in prospective buyer activity over the past couple of months.
“Across the group we have reported a rise in people attending open for inspections, bidding at auction and increased page views on our web advertising, so there are definitely more buyers out there.”