Good time to move up the property market?
Is it a good time to move up the property market? Yes it is.
It could be a dangerous strategy to wait for further falls in the established property market in Melbourne. The market has been shaky since late 2017 and so some buyers, listening to the negative comments in the press hope that the market will fall further. After 30 years in real estate I have seen many cycles. Long periods of growth, as experienced recently. I have also seen falls and consolidations such as when the Global Financial Crisis hit in 2009/2010 and when Pyramid Building Society crashed.
It is true that there have been some falls in value in Melbourne and Victoria since late 2017. What does this mean for property buyers? What positives do current market conditions present?
I think that now is a great time to think about securing your dream home in the dream suburb. Moving up the market is easier in current conditions. Selling your existing home and reaching up the market is a great strategy in more stable property market or falling conditions.
Auction clearance rates in Melbourne were 58% last weekend from 654 auctions according to the REIV. That’s down from 77% same time last year, nearly a 20% fall. Why so low? Well I spoke to several leading sales firms this week who have auctions this coming Saturday to find out why. They had interested buyers unable to bid at auction due to their finances. An auction is an unconditional purchase, so you need to be safe and organised. Buyers are right to be cautious if they don’t have the bank 100% on board. This is great for Buyer Solutions clients as we always have our finance approved and can confidently bid at auctions with less competition.
Other good news is less buyers are competing for properties than in 2017. At auctions I am seeing 1 or 2 bidders where last year there may have been 5 and several who didn’t even raise their hands.
Final good news is that we are accessing so many more off market properties now. My inbox and message bank are full of quality off market listings. Why? Vendors are reluctant to spend big marketing budgets on auction campaign that may fail. Cautiously, they are making their selling agents work and selling off market.
So, if the market is less competitive, do you need a buyers agent. We say “yes”. Get access to more and better properties, don’t miss this golden property buying window in Melbourne and Sydney. Hire an objective independent adviser who will be 100% active for you and not let you overpay.
Looking to up-size or upscale your home, please come in for a complimentary consultation to learn more about how the Buyer Solutions team of buyers advocates can help.
For up to date information on what’s happening in real estate in Melbourne, contact me at jspencer@buyersolutions.com.au or 0418 101 146.
Buyers Advocate, Buyers Agent, Buying property, First home buyers, Home buying, Housing Affordability, Housing Market, Janet Spencer
+61 39816 8555