Now you wouldn’t have heard this from me a month ago and you probably won’t hear this from me in a month’s time but, today, this week, and this weekend, if you are in the position to buy a property then go out there and give it your best shot. ASAP.
The property market in Sydney has been going crazy and prices have increased dramatically in this first half of the year but several, very recent factors are coming into play right now which have created a little pocket of opportunity for buyers.
Have you noticed that the auction clearance rates have dropped significantly in the last 3 weeks? It won’t last and let’s face it, the clearance rate is still quite good compared to previous years. It’s a short term phenomenon.
The things that have changed in the last few weeks:
Firstly and possibly most importantly buyers who have been looking this year and have been thus far unsuccessful are now jaded, tired, fed up, cranky and many have taken a month off to refresh, i.e. they are not going to open houses, instead they have decided to take a real estate break and get their lives back for a few weeks, gone away for a weekend, gone to see the kids play soccer etc instead of going from one open house to the next, all day Saturday.
Secondly, the media has now been reporting for a few months that things have been selling for $100,000, $200,000, $300,000 in excess of the reserve and painting the picture that buyers will pay whatever to get into the market. The media is usually several months behind reality too but buyers have started to feel completely ripped off and are taking a step back to consider what they are paying.
Fourthly, the budget announcement, again this is just short term jitters but it’s to do with confidence, confidence in the economy, in our government, in securing employment to keep paying that mortgage.
So now is not the time to give up, some vendors have bought and need to sell so they must quickly meet market expectations, the budget will iron itself out and buyer confidence will be back. Then you will be again competing with too many buyers and not enough sellers as is normally the case in the winter months in a great market. So, don’t stop looking now buyers, get out there and secure that property before it’s on the move again, and I think you only have a couple of weeks! Good luck!