What followed was the eventual decline in clearance rates, buyer activity and property prices. Interest rates began their journey back to normality from their historical lows and the market shifted back to a balanced state.
Two major factors that have influenced property prices:
1. Banks tightened buyer’s borrowing capacities with each rate rise
2. Consumer confidence waned with a fear of ‘overpaying’
These are the facts, but now enters the question for both buyers and sellers.
When will the market find the bottom? When the market starts to go back up!
Australia’s love affair with real estate as an asset class remains strong. With regards to house prices - when in doubt, it’s best to zoom out. Residential real estate historically remains one of the most stable asset classes in all history. With instability in equities, cryptocurrencies market and global markets - putting your hard earned cash into real estate remains a safe investment.
When considering the question of ‘Why Sell Now’, the major factor in a seller’s favour currently is driven by the lack of stock coming to market.
The difference ultimately between a balanced market and a buyers market comes down to the basics of supply and demand. Looking through our data, the volume of listing authorities (new stock coming to market) is down almost 14 per cent across Australia year on year; even heading into the traditional spring listing peak.
With lack of choice, buyers are still finding themselves in a competitive position for those agents skilled at the art of competition creation.
Over the month of September, 1,488 auctions conducted across the country by Ray White saw an average number of bidder registrations back up to 4.1 after bottoming out back in July. We saw over 94,000 buyers inspect our properties over the same period - 17 per cent up over the same time last year.
Yes, there’s pressure on prices. Sellers that are holding onto last year’s prices are being disappointed. However, engagement with buyers is swiftly turning up heading into summer. Sellers looking to sell are finding no shortage of opportunities.
This isn’t a market to take short cuts. Process, presentation and the people you chose to represent you on your selling journey matters.
Competition remains the critical ingredient to achieving a great outcome in the current conditions.
