Last year the housing market was red hot, not only here in the Central Coast but around Australia. It was about speed into the market. Knowing your budget, your brief and putting together the deal quickly.
It was a strong sellers’ market. Some of the craziest market conditions in history.
Now we are seeing a changing marketplace. It is definitely cooling and becoming more favourable to the buyer.
This could be because of multiple things:
- Change in government
- Increasing interest rate environment
- Increasing inflation
- Increased pressure on serviceability
- Consumer confidence and the market predictions of Central Bank interest rate rises
- World unrest between Ukraine and Russia
- Increased stock levels and lower volume of sales
As the market changes to favour a buyer, it is not always speed that is key. Certainty if a property is well priced and perfect for your needs, act quickly. You need to reconsider your strategy to secure a home in the changing market.
Identify when a vendor is simply dangling a ‘carrot’. Know your marketplace and understand the shifting marketplace.
It may be best to be patient during the campaign if you think it is overpriced and there is minimal buyer activity. Stay in contact with the agent. Watch the guide reduce and place a reasonable offer on the table during negotiations. This may save you tens of thousands, sometimes hundreds.
What are some key indicators of a buyers market?
- Increased average days on market
- Auctions failing to meet reserve
- Increase in vendor bids
- Pushing back of auction dates
- Converting auction campaigns to private treaty
- Withdrawn listings
- Lowering price guides throughout campaigns
- Less activity at open homes
- Increased vendor discounts
Be aware of the current market conditions and consider these when forming a strategy to secure a home.
This is not a time to sit on your hands and wait, be aware of the conditions and identify great buying opportunities. Enter the marketplace when you can afford to. Have your buffers in place for potential rising interest rates.
Looking to save more money?
Become aware of vulnerable, distressed or motivated vendors. This may include:
- Already purchased and need to sell to complete their new contract
- Looking to capitalise quickly due to mortgage stress
If you are considering purchasing a new home or investment property in the Central Coast, we would love to chat with you.