I think the phrase “Spring hasn’t sprung!” summarises what has been happening in the real estate market.
What do I mean by that? Normally there are a lot of new listings coming onto the market at the start of Spring in September, but this year that’s not been the case. Selling agents everywhere are reporting a shortage of listings. So we’re back to the bad old days of no stock. Investor activity is lower than it has been (due to credit restrictions imposed on the banks by APRA) but Owner Occupiers and First Home Buyers are back. There are plenty of buyers around but not enough sellers. I believe this will put a floor under prices and even create price rises (although not the double digit price increases we have been seeing for the last 4-5 years).
Some of the crazy heat has gone out of the market and as Buyers Agents we have been more successful buying at auction over the last few months. We have also seen buyers being a little more cautious and not buying just any property (for fear of missing out), like those in inferior locations (on main roads for example) or in poor condition (but with vendors wanting top dollar). Good properties are selling fast for good money but lower grade properties are taking longer to sell and being sold at a discount.
The media is reporting price falls in Sydney but on closer inspection the number quoted for a monthly fall is 0.1% !! With a median house price near $1.2M we are talking a price fall of $1,200. You’ll excuse me if I don’t panic and consider if we should sell.
I think we are in for a busy 3 months leading up to Christmas, so if you need a hand with finding an off-market property, or working out the real value of a property you are interested in, or need help with bidding at action, please give us a call.