Vendors are still keen.
Tuesday 19 Jan 2016
The thing about the property market is that it will always find it's own equilibrium. Like wine in a glass when bumped it may initially rock around a little crazily, but it will settle.
At the end of last year the property glass was very full after so many months of incredibly strong demand. Expectations, supply and results were all high.
And then there was a bump when the banks chose to raise their rates ahead of the RBA. It did start the market rocking. There were still great results and good demand but there was also undeniably some cases of easing. Basically it was a bit all over the shop. A little up: A little down.
But now vendors are back. We have listings ready to roll out in conjunction with the return to school which I consider marks the real, albeit unofficial, start of the year. And I can assure you the motivation of those vendors listing as this time is strategic and very positive. They’re not looking to sell in a panic or under pressure.
It is a signal the market is finding its balance again.
Our vendors see value listing now so their auction campaign is top of mind right when potential buyers are getting serious about doing a deal. Many buyers have spent the holidays considering their finances and their options and are now ready to get down to business.
I recognise there remains a degree of uncertainty about state of the economy on the back of the Chinese and local sharemarket fluctuations. I think it will fuel caution but that’s okay. Caution is sensible not catastrophic.
The glass is definitely more than half full and I think it’s settling nicely for a premium year ahead.