It seems that every time you watch the news, the media are talking down the Sydney Property Market. There is no mistake that conditions and urgency are cooling off to say 6 months ago but don’t be disillusioned by the fact that the better properties on say better streets/areas are achieving strong results.
The actual stock levels or (listings) are still quite low. It almost feels strange that days on market are getting higher considering there are still plenty of buyers in the mix.
I feel that it’s the quality of stock that is on the market. There is a big gap for upsizers to commit to if they were to sell their moderate sized home/unit to buy into something far superior. An example would be owning a 2 bedroom unit worth $800k. Having a mortgage of $300k on that unit but needing to purchase a home worth $1.5m to fit the growing family and needs. This results in approx.: $1.1m mortgage to service. It’s a massive gap or jump from your humble $300k mortgage to almost quadrupling it. The repayments and associated outgoings are tripled too.
I strongly believe that this portion of the market (the upsizers) are staying put hence no quality stock and low stock levels. I am seeing more divorce sales and downsizers properties coming to market and the better ones out of those are selling for strong money. The properties in busier locations or under flight paths etc are spending longer days on market than has been the case over the past few years.
It is certainly an interesting market place. It’s almost a case of playing catch up from the vendors side of the table. We as buyers on the front line can see the trends in a “live” capacity as we have access to all stock from all agents. Selling agents can have a somewhat distorted view due to only having access to their own stock and vendors are typically wanting 6 months ago prices which is why you need experience at the negotiation table.
The hardest factor of this market place is the vendor holding out for their “Dream Boat” price which essentially isn’t there as the market urgency has changed. Trying to align the vendors’ expectations and market value is going to be the Real Estate selling agents job for the immediate future. If you need a strong negotiator on your side, contact us at Propertunity.