There’s a curious air of panic about the place!
Some folks are freaking out. The media doesn’t really help the cause. “Majority of homeowners would be better off renting and investing in shares” they say. Keep in mind the media likes to dramatise everything – that’s their job. But the media doesn’t run around listing and selling properties do they? I do – and I say differently.
I’m an industry veteran. I’ve seen it all. What goes up must come down. What goes down must come up.
Yes the market has cooled down. A correction was always inevitable. Prices were rising by too much, too fast just over 12 months ago, it was unsustainable. However, the property market now, is not as bad a what the media will have you believe. As a matter of fact the market is on the rise as of mid 2019.
As an active agent in Sydney I’m already seeing signs of market improvement:
- Auction clearance rate last weekend was 65% – a huge improvement
- We are seeing more buyers come through to our open homes
- We are getting offers on our sales properties
- Our sale stock is moving, provided our vendors have reasonable price expectations
- Average days on the market for our listings is decreasing
So being an industry veteran and an active agent, this is my two cents:
You’ve got a limited window of time where you can secure good property deals. Now is the time when everyone will be looking back and saying “we should have bought then”. Get your finance sorted and get yourself a good deal while you still can!
There will be some buyers who miss out entirely because they were waiting for the prices to go lower and lower. Before they know it the market will swing back up. I fell victim to this myself; I missed out on my dream home because I was trying too hard to negotiate a bargain. The same calibre of property at the same price range still hasn’t come up for sale again and I don’t expect it to: the place was perfect and had my name written all over it!
If you are happy to sell your property at a good market price now is still a good time to sell. I walk my talk, I just sold my apartment in Surry Hills last month and it worked out for me. I sold my apartment $110,000 less than what it was worth in 2017 but I could have saved $300,000 on buying my dream home (more to come on that case study in my next email). I would not have been able to afford that home in 2017.
All I ask is this. Go back to the 1991 recession. Go back to the GFC. Go back to the end of the mining boom. If it’s a bad time to invest now, it was a worse time then.
And was it a bad time to invest? If you invested in property then, do you regret it now?
Of course not. Because the market moves in cycles. What goes up, must go down.
Author: Joseph Fairchild
Joseph is a local property economist and thought leader in the property industry.
Consistently Top Agent in Sydney CBD: www.ratemyagent.com.
No.1 Agent in Haymarket NSW 2000: www.ratemyagent.com.