Clearly, we’re in a seller’s market at the moment, with the supply/demand ratio being out of kilter.
First home buyers, established homeowners and investors are all out in the market chasing the limited number of good properties for sale
Corelogic estimates that in the 3 months to May, there were around 164,000 dwelling transactions that took place around Australia.
Meanwhile, just 136,000 new properties were added to the market for sale in the same period.
So even though this number of new listings is higher than the previous five-year average (which is closer to 126,000) the uplift in sales volume means that the stock has been quickly absorbed.
If we’re in a seller’s market, why are there fewer sellers?
The short answer is FOMO – fear of missing out.
While buyers are suffering from FOMO as property values keep rising, some sellers also experience the same phenomenon, delaying their decision to sell with the expectation that prices will keep increasing, so they delay selling.
So what does a property buyer do?
Firstly, let me tell you what you shouldn’t do.
Don’t look for areas where there are is a significant level of stock on the market.
In general, these will be areas that are out of favour and while it may be easier to find a property, it almost certainly will be a secondary property.
In particular in the city CBD, and higher density urban locations are currently experiencing softer demand, but if you’ve been following strategies we use at Metropole to help our clients outperform the market you would know we always avoid these areas.
And don’t look for a bargain in today’s hot market, instead, buy the best property you can afford because you shouldn’t expect average long term returns from a below average property investment.
By the way … many of the properties Metropole have managed to secure for our clients in this current seller’s market have been off market properties that we have been made aware of because of our long, ongoing relationships with many top selling agents.
If you’d like to level the playing field and even the odds in your favour, why not get the team at Metropole on your side?
It’s just too hard for a “normal” property investor or a homebuyer to get on the speed dial of these estate agents.
You’re probably only going to deal with selling agents a few times in your life, on the other hand, the team at Metropole was involved in over a quarter of a billion dollars worth of property transactions in the last financial year alone.
Do you think this puts us on the speed dial of most selling agents in the areas where we are active in the Sydney, Brisbane, and Melbourne property markets?
So while it may be difficult for you to get the call, you can still benefit from this special treatment by having the team at Metropole on your side.
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