With a severe shortage of property listings over winter and buyers ready to pounce, Property Buyer expects an increase in transactions over Spring.
The next three months will offer some of the best buying opportunities since the COVID-19 pandemic. With interest rates peaking, and many mortgage holders suffering mortgage stress, there are some motivated vendors now listing their properties.
CoreLogic reported that prices over the winter period rose by 3.8 per cent in Sydney. I expect to see price rises levelling off, yet still an overall positive increase during spring. Auction volumes and clearance rates were very healthy levels last month, with Sydney around 75 to 80 per cent. Many vendors are tired of waiting and ready to list their homes and embrace the next stage of life.
In the prestige market, there is chronic shortage of stock at the top end of the market, with approximately 75 per cent of transactions occurring via off-market channels. The low Australian dollar is enticing some international and expat buyers, and there is a significant number of Chinese buyers returning to the market. These buyers are driven by four major attractions: ‘great schools, blue sky, ocean views and clean air’.
The downsizer market has been very active, particularly on the North Shore. Vendors are selling up the family home, especially in the $5 million to $15 million range and buying high quality, low maintenance townhouses and apartments. Other vendors are simply downsizing debt, buying properties with a lower or zero mortgage.
My buyers’ advocates have noticed that the buyers who have sold are highly motivated to buy quickly and secure their next home, and have a touch of panic, as prices have levelled out and may start to rise again.
The buyer mindset
Many buyers are still sitting on the sidelines waiting for the perfect buying conditions to appear, but no one rings a bell to say when this time has arrived. Interestingly, CBA is reporting that only 0.5 per cent of borrowers are behind on repayments, so don’t expect to see massive mortgage defaults.
Most buyers have been concerned about missing out and frustrated with the lack of choice. Some buyers have a sense of urgency as their finance approvals expire after 90 days and may not re-qualify.
The vendor mindset
Many vendors have been reluctant to list their properties in fear of being unable to find an alternative property due to low listing volumes. Many vendors have been influenced by media stories and have inflated price expectations, but realistic sellers who accept comparable sales are ready to move.
Here are my top five tips:
- Create a simple ‘Buyers Brief’ with your target suburbs and preferences.
- Have your deposit ready and finance pre-approved.
- Get out every week and research the market, taking notes on every property you see.
- Critically assess a property’s pros/cons and future-proof your housing needs.
- Be decisive as quality properties sell quickly.
If it all seems too hard and you’d like help, consider engaging a buyers’ advocate to do everything for you.
Rich Harvey is the CEO and founder of propertybuyer, an independent Buyers’ Agency that helps home buyers & investors find, appraise and negotiate the ideal property. Call 1300 655 615 or visit
www.propertybuyer.com.au