The stats don’t lie. Auction clearance rates are down. There is more stock coming on to the market and days on market are stretching. Not exactly Doomsday, but certainly undergoing a correction with balance being restored to the Sydney housing market. I believe there will be at least only single digit growth and possibly double digit depending on suburb next year. So is this the definition of a “crash” or “bubble burst?”
As the buyers don’t have the urgency or burning desire to not miss out, the selling agents have to evolve with the market place. It’s been a very easy run for them over the last few years. Essentially order taking and letting the boom frenzy do its thing.
The more experienced players that have been around in the industry for a long time will not be concerned. They have seen tough times, good times and great times and know what it takes to switch from an order taker to a salesperson. The old “roll your sleeves up and put some elbow grease” into manufacturing a sale comes in to play. I pity the agents that started their careers in 2012. They will have a lot to learn and a huge adjustment to acquire as they move into a different part of the cycle.
My advice is to be very aware of underquoting and unrealistic tactics to try to manufacture a sale from the agent. It’s the easiest mentality to fall back on: “pitch it low and watch it go”. This can be very frustrating for home purchasers. (Don’t be fooled by “Underquoting Laws”, it’s real estate. Every time a law is made, people start looking for the loopholes).
Take considerable note that vendors or people not in “Real Estate Mode” are typically 6 months behind the front line. Their expectations will be top dollar for the meantime. Bridging the gap is going to be tough for all involved.
A skilled Buyers Agent can sift through the pricing dilemmas that arise and assist in making better decisions for buyers at the negotiation table.