Stonnington has seen a very patchy year on the property front.

With stock levels well down on 2010 numbers clearance rates still remain at disappointing levels despite the lack of property. Speculation on the global economy, interest rates and fear of an overvalued property market have been the major factors fueling the property slump.

According to the National Australia Bank housing prices fell for a second consecutive quarter with their property index showing a fall of 14 points in the September quarter, following a 5-point fall in the June quarter. This fall in property prices has been evident with property sales across Stonnigton with many vendor chasing the market down.

Another factor in the Stoonington market has been the lack of A class property hitting the market in 2011 as vendors hold on for better market conditions. The second string property has been more severely market down with buyers being far more critical on price. Properties with overlooking, main road locations, difficult floor plans and railway effected property etc. have been severely marked down this year.

Banks have also tightened their lending criteria with many buyers finding it hard to secure finance in 2011. NAB held a survey that found demand for existing housing weakened nationwide in the September quarter whilst house rents increased 0.l7 per cent in the September quarter, down from the 1.3 rise in the June quarter.

This year’s traditionally busy Spring selling season has been unusually quiet across Stonnington which may be a blessing in disguise. Had we seen the property numbers of last year we could have experienced a market crash rather than a slide. We are expecting the remainder of the year to remain fairly stable and are confident of a positive opening to the 2012 with more Stonnington sellers having more realistic expectations in line with current market conditions.

The most critical factor when planning an upcoming sale is to get your pricing strategy correct to attract the right buyers. When the market is flying pricing strategy mistakes can still result in a good sale. Thant is not the case in Stonnington in the current market. Get it wrong and you severely compromise any chance of a successful sale.