The ground under the recent price boom has started to shift, though.
Some noticeable changes have taken place in the last 6 weeks:
• Interest rates to investors have gone up
• Lending criteria has changed including equity and serviceability requirements and this has started to take the heat out of prices
• Lower clearance rates have effected buyer sentiment
Although we are seeing slightly more stock on the market, if the quality is poor and vendor expectations aren’t inline with the market, then it will either pass in or sell below expectations. However, regardless of the market, quality property is still attracting strong competition when priced correctly. As we move through this changing cycle, having an industry insider on your side is invaluable. Knowing which sales agents best manage their vendors’ expectations will be an enormous advantage. Agent relationships, access to off-market properties and a strategy for achieving your purchase objectives are now more important than ever. And an experienced Buyer’s Agent can make all the difference.
It’s gone from Nuts to Normal. The bubble wont burst – the banks can’t afford it and nor can the government. The bubble will be deflated and reinflated over time (like it was from 2008-2012). But whatever you do, DON’T panic: in the case of Sydney property, what goes down, must come up. Remember though, you can’t pick the bottom of the market – we never have. Buy when you’re ready and if you want to buy confidently get professional advice. We didn’t know the bottom of the last cycle was in October 2102 until we started to see prices rise again and following the same rationale, we wont know the bottom of the next cycle until we are through it too…
What to do now:
• Keep your eye on the long term: Markets move up and down in the short term – but only one way in the long run – historically. It is “time in” market, not “timing” the market.
• Off market is here to stay, this is not a passing fad – if you want 100% visibility and not just seeing 40-50% of the available market you need to engage a professional who has the reach, contacts and negotiation skill
• Experience & market knowledge are essential. Retain the services of an experienced Buyer’s Agent. Note: not all Buyers’ Agents are the same. The what, where, when, why and how will be a success based on the ‘who’?
• Have a clear strategy and understand what you’re trying to achieve – talk to us, we will help you.
Every market situation generates a new irrational fear. In a rising market its FOMO. To be successful, you need to be an outlier or aligned with one. Stop reading the papers, stop following the herd. Engage a professional who carries the weight of experience, knowledge and wisdom. If you’re reading this, you already know one!
There is on time like the present.