November Director’s Desk – The New Normal.
Tuesday 22 Nov 2016
We are nearly at the tipping point in the property year: That moment when the realisation hits that the goal to buy or sell in 2016 might not be achievable. But in contrast to conventional wisdom I don’t think we will see the market ease off as the end of the year draws closer. For two reasons….
I don’t see the market settling down over the holiday season predominantly because there are still significant numbers of buyers looking to secure residential property. Certainly many are disappointed not to have found their perfect property already in the 2016 calendar year but that doesn’t mean they’re giving up. Those buyers will maintain their search over the holidays.
The second important factor that cannot be underestimated is the possibility this is the new normal.
It could be that listings will remain low in number and therefore in high demand. It’s quite a scary prospect but the last few months have shown potential vendors to be persistently reluctant to commit to selling despite continued evidence of strong demand the extraordinary sales results.
The intriguing reality in that equation is where those buyers are coming from. Traditionally we see vendors take a property to market in order to free up capital so they can buy. Upsizing, downsizing or just moving the natural flow of the market is to buy and sell. Right now with interest rates at record lows, and a variety of lending options available we are seeing more clients with finance and motivation to buy first without automatically choosing or needing to sell.
That means there is so much potential to achieve fantastic sales outcomes for those who do list their property that I find it incredible more are not seizing the opportunity.
I can assure you our team will be on the ground right up until Christmas and into the new year identify properties supporting our clients property search and we are keen to take on new listings that will help meet buyer demand.
It’s not too late to get the ball rolling so give us a call and end the year ready to seal a great property deal.