Wednesday 11 Nov 2015
One of the hardest things we face when a market is in transition, as it is now, is managing expectations. Everyone agrees the market is changing. The problem is at the moment nobody agrees exactly what the change means for them.
Talk of cooling demand means buyers increasingly expect to secure a great deal but vendors continue to expect to secure a price today higher than what the property next door secured last week.
The thing is, right now both those outcomes can be achieved. And that's why it's tricky because obviously those two outcomes can't be achieved at the same time for the same property! It's also tricky because there is not yet any obvious pattern to help guide buyers and vendors as to exactly which properties will generate what outcome.
Our auctions are still generating good competition and good prices for good properties. However you will have undoubtedly read the auction clearance rate has fallen so not every deal is being done under the hammer.
And in the current market it is dangerous to automatically assume there will be price growth. That is not what anyone likes to hear but it is important to recognise that it is a possibility. For a while it was okay to expect value to rise for no reason other than the fact the market was so hot. Of course there is still opportunity to generate a higher sale price but it can certainly no longer be guaranteed so vendors need to be realistic.
More than ever now is the time to talk honestly and openly with an agent you trust and an agent with experience your area of interest. They are the people who will know exactly the current appetite for property in that specific area and in this changing market that local knowledge is key to setting the right expectation and achieving the best outcome.