Does it get any better for Buyers?
Only time will answer that question but it certainly is a great time to be shopping for a new home or investment property!
Since our last September update, with the coming of Spring we have seen property listings in WA increasing every day from the then 19,573 to the now 20,966 (Source: RP Data).
We would normally expect extra supply of properties during Spring… it’s traditionally one of the best times of the year for owners to sell their home… the only problem is that the warm weather has not brought the buyers out in equivalent numbers. There has been 362 sales over the last fortnight compared with the 390 sales at the same time last month…. So even with all the extra choice there has actually been less people purchasing Perth Property this month!!
So what has happened economically to affect market sentiment?
The RBA left interest rates on hold on the 5th of October, despite 18 of 24 economists predicting a rate rise. I have to sit and scratch my head as to why none of the economists can seem to get it right. My suspicion is that a BIG media headline predicting a rate rise is as effective if not more so then the rates actually rising and the RBA is doing their best to dampen inflation with scare tactics.
With the recent announcement of the October quarter inflation rate being 2.7877% and unexpectedly down on the June quarter rate of 3.0539%, many economists are predicting the RBA to hold interest rates this month. We will have to wait and see.
I am hoping that that we don’t see a rate rise for the rest of this year and we can start to feel some stability from the new government, which will then let consumers go into the Christmas period in a mood to shop!
Christmas will be a great time to shop for property!
Over Christmas you will not only see some great bargains in stores but there will be plenty to be had in the property market. Buyers need to remember that in most cases a great purchase is not necessarily made at asking price but at the negotiated price. Buyers ask me all the time, “What will the owner accept?”
The fact is that us as agents don’t actually know what the owner will accept but it is our job to get the best price out of every buyer and the owner can either accept it or reject, it is up to them. I personally love writing offers at any price!
Why?… For a number of reasons-
1) It allows me to use that offer to draw other interest out of the market. What I often find is that when I text all buyers that have been through the property to date to let them know about the offer, the human emotion of fear kicks in and anyone who is sitting on the fence will come forward with their interest. Of course they don’t know what I wrote the other offer for do they?
2) The only true measure of a properties market value is what buyers in the market are willing to pay. Now of course a sale does not take place unless we have a willing buyer and willing seller, so if the highest offer written is not enough for the owner to move forward then they can re-assess their game plan and either look at withdrawing the property from the market or renting it out.
Over Christmas there will only be the sellers that are more committed to selling in the market and if you have been thinking about making a purchase, get out there while you have lots to choose from and don’t be afraid to make an offer even if it is below the agents listing price.
If you want to super charge your property search make sure you take advantage of our FREE Buyers Assistance.
So what should potential sellers be doing?
If you have been considering selling your property my advice would completely depend on your circumstances… Like a Doctor I would not prescribe surgery for someone if all they need is a band aid so make a time with me to go through your specific situation and we can explore the options available to you. You can get more details on our Sales Edge here.
What sellers do need to realise is that if you can sell with a good agent that will maximise their sale price and then purchase a new property well in the same market, they can come out ahead. Being focused on an unrealistic market appraisal some over zealous agent gave you at the height of the property boom will only keep you in the same home and that is great if you are happy there.
I will be sure to keep you updated with what is happening in the market next month and in the meantime if you are buying or selling make sure you get the Edge by taking advantage of our Property Education Resources and our services.
I would love to get your feedback and comments so please post them below… Did you find this Update Useful? Would you like any other areas covered?
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