Educated vendors are selling, fast.
The massage from Elliott, who works at the real estate coal face day in and date out is no different to our own.
MARKET UPDATE E-NEWSLETTER - NOVEMBER 2011 (Double Bay - New South Wales)
With 2011 drawing to an end, it goes without question, we are in interesting times and I have never seen a real estate market like we are in at present. In my experience, with over 10 years of selling real estate I have negotiated deals in both the peaks and troffs. The past quarter has proven to be contrary from my previous outlook for residential property in the eastern suburbs, and this is expected to continue.
At the top end of the market, we have experienced a significant softening, falls between 15-20% from the peak experienced in 2007/2008. Many economists predicted this softening, based on the logic that real estate pricing was out of balance with personal wage growth. Additionally, relative to the rest of the world, Australia remains more expensive than many of our other first world countries.
On a positive note, there has never been a better time to upgrade, logic being the gap between stretching to secure ones “dream home” and selling your primary residence has significantly decreased. Due in part to the international economic outlook ‘baby boomers’ are losing retirement money in the stock market, resulting in a sell-off of their primary residences to inject more money into their respective retirement plans. Many retirees have held off waiting for the market to improve. However, not everyone can hold back there life plan for several years.
Brining a projected outlook back to real statistics, last week Ray White Double Bay had great success in the auction room, selling 8 out of 8 properties – 100% clearance rate. Going under the hammer were a wide range of homes from $600,000 - $5,300,000. Such success relates directly to pricing these properties correctly in the current market. It is imperative to have an honest straight forward conversation with owners throughout the sales process, and in particular just prior to selling their home. If the price is out of line with the market, the property may not sell, as a result the house may remain unsold for a very long time.
As a result my team and I are striving more than ever to give our vendors the most accurate and up to date advice, comparable sales, on the market competition and buyer feedback to ensure each and every client are not be going into the sales process blinded by price.
A note to buyers, it is always difficult to find the ‘right property’, ie. The home which ticks most of the boxes. It is even harder to predict the exact bottoming of a real estate cycle.
It is with this in mind that I would strongly advise all potential purchasers out there to continue looking and try put an offer forward on a home that suits. You may be surprised and end up owning your perfect “dream home”.
At any point during your purchase or sales process I am more than happy to give some unbiased advice.
Elliott Placks, a licensed agent, was recently made a director of…