Leading into September, commentators consistently talked up the real estate market. We all know about the election results, the rate cuts – with more expected, and the loosening of APRA’s mortgage serviceability conditions. Surprisingly, this has not resulted in a strong spring market as we have seen considerably lower property listings in August and September.
On the flip side, auction clearance rates have positively bounced in Sydney. There is a bigger pool of buyers with pent up demand, ensuring that most properties sell relatively quickly.
On the economic front, it’s all doom and gloom, both in Australia and globally. US/China trade wars and UK Brexit chaos leading the charge. Domestically, we have had the slowest GDP growth in a decade (in seasonally adjusted terms GDP expanded by 0.5% over the June quarter, or 1.4% annually), wage stagnation, a drop in household savings and job losses at some of our biggest employers like Woolworths and Wesfarmers (Target). Seasonally adjusted, total new capital expenditure fell 1% last financial year.
What does this mean for property buyers?
It’s a double-edged sword for property buyers, as they have more available capital and yet are frustrated with the lack of stock. Due to strong competitive bidding we are seeing some properties in prime markets sell well beyond the reserve.
The Rose and Jones advantage.
In this highly competitive market, in order to get ahead of the other buyers without overpaying for a property it is well worth employing an experienced property buyer to ensure you buy a great property within your budget.
At Rose and Jones, we give our clients: –
- Detailed calculations on the value of the property and provide competition buffers. This means our clients are fully informed as to where the target property sits in the market and ensures they don’t unknowingly overpay
- The benefit of our experience and long-term relationships with selling agents. This gives our clients early access to off markets and pre-market properties which ensures they see 100% of properties for sale
- Our experienced and detailed assessment of the property, including floor plans, location, aspect and intimate knowledge of local market, which ensures our client’s investment keeps pace with or outperforms the market.
- Access to skilled property negotiators which levels the playing field in negotiations with seasoned selling agents.
Please call us on 02 9327 6944 or email firstname.lastname@example.org to discuss.