It’s the million-dollar question. Everything you read or hear at the moment is, once again, predicting the property market is going to crash, some even predicting prices could drop as much as 20%.
Haven’t we heard this all before?
Weren’t we told over and over again the exact same pessimistic spiel during Covid?
Were the predictions correct….no!
The Redland’s property market is very sturdy and, especially during Covid times, the market surged ahead in leaps and bounds. We saw new street record sale prices being set every week.
Yes, the market has had an adjustment in recent times but nowhere near as dire as the media would have you believe.
It appears we are starting to move a little into a Buyers’ Market however the market is still very strong and we are still getting excellent prices for properties.
Properties are taking slightly longer to sell, open home numbers are reducing and offers to purchase are starting to come in below the listed sale price once again on some properties.
Of course, you still have those agents who will “bait” the market with ridiculously low listing prices. These houses, of course, still pull large numbers to their open homes due to the low listing price, with the property actually selling for tens of thousands of dollars over the listed price – that’s just how some agent work.
Most good agents are aware of the change in the market and adjust their listing price accordingly, staying on top of buyer demand -v- seller expectations.
According to Michael Yardney’s Property Update, here are 10 reasons he sees the property market is not going to crash:
- There is a shortage of good properties for sale and virtually no properties to rent.
- International immigration is picking up and this will increase the demand for housing.
- There is little new construction in the pipeline – we’re just not building enough dwellings and increasing construction costs at a time of a shortage of labour means the end value of new projects will need to be up to 20% higher to make projects financially viable for developers.
- Our economy is still growing strongly and is very resilient.
- Unemployment is at historically low levels meaning anyone who wants a job can get a job (so they’ll be able to pay the mortgage repayments.)
- Wages are starting to grow.
- Household balance sheets are strong – we have a ‘natural buffer’ with $250- $260 billion in aggregate savings nationally much of it in offset accounts.
- Many borrowers are ahead in their mortgage payments – Matt Comyn, chief executive of Commonwealth Bank recently said that three-quarters of their loans are approximately two years ahead on repayments.
- We have a strong banking system that has been strict in its lending criteria, meaning there are very few non-performing loans.
- There are still Government incentives to encourage first-home buyers into the market.
As a seller, if you are waiting for the “right” time to list your property for sale, the right time is when it suits you, your circumstances and your financial situation.
Remember, if you need any help or advice, we are just a phone call away.
All the best, Simon.
Source: Michael Yardney’s Property Update