Well, it may seem so at the moment, but fear not, the balance of nature tends to be quickly restored.
With the constant barrage of bad news lately on the news you would be forgiven for thinking that the entire world is falling to pieces. From terror attacks, a plunging stock market, Melbourne and Sydney house prices plunging – and let’s not forget our very unstable political landscape, it’s hardly surprising that confidence has been shaken.
So, what does this all mean for the property market?
Earlier this year the market was brimming with enthusiasm, buyers were plentiful, and homes were disappearing within hours of being open for sale. Now that is wonderful if you are selling and don’t get me wrong there were some extremely happy sellers early 2018.
At the moment that current plethora of gloom and doom, has weighed slightly on market sentiment and if you ask any (honest) agent, they will tell you that buyer’s numbers have slowed significantly from earlier in the year and property is now taking longer to sell and buyers are being more aggressive with their offers.
But just as the current markets gloom and doom has some long faces around town for those on the market, the froth and bubble of January/ February was also unrealistic and couldn’t continue on indefinitely. After all, rapidly rising prices is what got us all in trouble in the first place! It’s all perspective, and whether the market is going up or down, it’s always good for someone.
The reality is we are now returning to a more normal market. Characterised by:
- Increasing stock levels
- Longer days on market
- Buyers are patient and feel no pressure
- Paying full price is a thing of the past
- More offers are subject to sale
We have been very spoilt in Perth with very low stock levels over the past few years and buyers not having much of a choice if they had their hearts set on a particular suburb or school. This over the long term is not normal, now were 20% price rises a year, so now we are seeing a reset where things are beginning to get back to normal.
People will still buy and families will still sell. Babies will be born and older couples will downsize and the circle of life will continue. The market will never stop ang I guess if it ever does I will finally get my lifelong dream of becoming a barista. So what I am saying is there is no need to sound the alarms, the world is not ending and the property market will continue.
What does this mean of you are selling?
The majority of property industry commentators expect us to be in a period of very low growth for some time as yet. So, you can still get sold and for a great price, but you need to be strategic about your pricing and your marketing.
Buyers are getting increasingly more information available to them and there is no fooling anyone anymore. They know everything. And if they don’t, for $20 on Landgate they can find out. Coupled with that they are increasingly time poor, which makes pricing so important. Gone are the good old days of over pricing and allowing for a discount to the buyer. Price it wrong now and they just don’t come at all.
Top tips to get SOLD:
- If you don’t have a chosen agent, make sure you always get 3 appraisals
- Don’t select an agent because they tell you want you want to hear
- Choose an agent with proven results in your area as local knowledge is more important than ever when getting buyers to out pen to paper
- Don’t scrimp on marketing. Not even the best agent can sell a secret. Make sure you are shouting it to the world
- Price it properly.
- Presentation, presentation, presentation. There is only one first impression.
- Visit as many home opens in your area as you can. This will give you a reality check regards into your home as well as some insight into how different agents operate and follow up.
There is no doubt we are in choppy waters for the next few years but life must go on and economists rarely get it right. But with the right strategy, marketing and pricing you and your family can still achieve your goals. This market presents some incredible buying opportunities, especially for those just getting into the market and those trading up, its neve been better.
If you need a navigator, I am always happy to chat.
Please note that this is an opinion and does not constitute financial advice. Every families financial position is different, and you should consult your accountant and financial planner before making any decisions.