How To Buy In Todays Market
In This Weeks How's The Market | Edition 37
How To Buy In Todays Market
Low Stock Keeping Prices Stable
First Home Buyers Are Struggling
How To Buy In Todays Market
As a buyer’s agent, I have seen some drastic changes in the market over the last 24 months. In 2021 and the beginning of 2022, buyers had very little leverage when negotiating on properties. If you wanted to be difficult and have lots of terms associated with your offer, agents didn’t need to work with you because they had so many other buyers willing to go unconditional.
In today’s market, that is not the case. Things have swung very much in the favour of buyers and vendors have been forced to look at offers for less than what they would have been able to achieve last year.
However, you will still experience competition on great properties, with high amounts of competition still present in some markets as stock levels are low.
Whilst this is the case, remember to be patient.
Some properties will be priced too high and stay on the market for longer than average periods of time. If an overpriced property stays on the market for over a month or two, it may create a great opportunity for you to negotiate a great price.
Don’t be afraid to put in a lowball offer (within reason) on a property. Depending on the circumstances of the vendor, they may need to sell and you may be able to meet them at a level that also works with you.
As interest rates rise, it’s more important than ever to get a property without overpaying so being patient and knowing how to negotiatie are more important than ever.
You may want to start the negotiation process with multiple terms and then change or remove some terms to sweeten the deal for the vendor without moving on price.
What is most important is that you don’t lower your standards and settle for a subpar property, either because it is cheap or because there is nothing else in the market. Use these times to let vendors sweat and stay on the hunt until you find the right deal.
What The Agents Are Saying
In the south east and outer eastern suburbs agents have been stating that very low stock levels are keeping the markets moving fast. Many agents have said they have noticed an increase in numbers of people through their opens over this same period.
The Geelong markets on the other hand seem to be slowing down. Whilst their prices are yet to drop they are noticing very few numbers through their opens and days on market is starting to rise in the northern suburbs.
The Wow Factor!
2,963 m2 in Hawthorn on the Yarra with a private jetty… WOW
2 Yarra Grove, Hawthorn, Vic 3122
In The Media
Australian Property Market: First Home Buyer Loans Fall To Five-Year Low
This article correlates with the conversations that I have been having with mortgage brokers and real estate agents of late. Many of the first home buyers that are currently getting into the market are receiving support through guarantors or cash gifts to help their children get into the property market.
Therefore, it makes sense that those that don’t have this support are struggling to the huge reduction in available borrowing capacities.
Final Thoughts
It’s been an interesting week in real estate with interest rates going up for their 10th consecutive time whilst we have simultaneously seen a competitive marketplace on the streets at auctions.
I believe the true effects of the interest rate hikes are yet to be felt and that even after there is no interest rate increases, we will not see an instant spike in prices in the market.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is my opinion, please seek your own expert advice when making decisions.
