Like a hot air balloon, markets need heat to rise. When the heat comes off, the balloon – and the market – starts to come down.
Where is the balloon on the north coast right now? It’s in a ‘normal’ position – and like the bowl of porridge for goldilocks – it’s no longer hot but it’s not cool either. Some would say that it is ‘just right’.
And while this current normal period took buyers and sellers a little by surprise a few months ago; the transition period from hot to normal is now over and people are more aware of where the market is at and what properties are worth. Our buyers are educated and have no appetite for overinflated prices; but get the price right and the sale will follow.
With summer now wrapped up, activity is starting to pick up. We have more sellers making enquiries than in the last six months, and things have settled into a new routine. People who were previously sitting on the fence are now feeling more comfortable about current market stability and are jumping into the fray.
The current market certainly favours the buyer. During open homes, we are seeing good attendance at well presented, desirable properties. And less desirable properties – not so much.
In its current state, the market provides agents like us with a golden opportunity to really help navigate sellers through the sales process. With properties taking a little longer to sell, great market knowledge and salesmanship is more important than ever.
If, like Humpty Dumpty, the sale looks like falling over, we are there to help put it all back together. We will work to keep the buyer interested and to achieve a sale that is pleasing to all parties. We can put the fires out that you may not see coming and draw on our considerable experience to help you through unforeseen circumstances. We provide advice with aspects such as a less than glowing building inspection with adverse building reports, finance obstacles and contract hiccups etc. And as always, we are acting on your behalf helping your property achieve its full sale potential.
Anecdotally, builders are starting to report a slowdown in building enquiries. Given that it has been frenzied for quite a while, this is a thumbs up for people looking to build, as it means less waiting to get started.
TIME ON THE MARKET
We are seeing an average time on the market of three to four weeks from first listing until the offer of acceptance. However, this is when the real fun starts, and it could be another three weeks or more before contracts are exchanged.
Why the wait? The holdup lies with the banks who have adopted more of a cautionary approach in the wake of the Banking Royal Commission.
The take home message for buyers is have your paperwork ready. Meet with the banks prior to searching for a home and obtain pre-approval at the least. Even in situations where a buyer is fully prepared and approved, we are still seeing lengthy wait times.
Buyers need to be prepared to jump through some hoops. Even if you were pre-approved six months ago and your circumstances have not changed, expect to have to start the whole approval process again. And people are finding they can’t borrow as much as they could twelve months ago.
Naturally, this practice is contributing to a slowdown in the market. It also creates a false impression of local real estate, with some homes appearing to be on the market for two months or more; when in fact the property has been in the process of being sold the whole time.
We’ve all seen the recent headlines about where the real estate market is heading in Sydney, and some people are quick to draw similar comparisons here. And while it is true that the north coast market has slowed a little, there remains movement and opportunity.
Real estate markets are a curiosity, and the pivot point between demand highs and lows is always quick when it happens. Just six short months ago we had a situation of great demand and very low supply. Then in June 2018, everything changed.
Right now, we are observing that prices have fallen marginally from earlier in the year, and this is creating opportunities for people to enter the market and secure a home. And while it is true that there are less properties on the market than at the beginning of Spring, this is also typical of this time of year.
Properties are taking a little longer to sell at present, with an average time on the market of 4-6 weeks, and the sense of urgency that we encountered at the beginning of the year has dropped away. Fallout from the Banking Royal Commission has seen finance approval taking longer, where banks have really tightened up the lending process. Loan paperwork is now much more onerous than it used to be, with elements such as a HEX debt and monthly Netflix accounts now forming a part of the big picture. And while we certainly applaud the creation of a system that is more honest and transparent, when banks tighten up lending criteria they hand out less loans, and this then has a direct effect on property demand.
When the hype drops out of a market, many would-be sellers take a sabbatical and delay their planned sale while they wait for the market to pick up again. And likewise, many buyers take a ‘wait and see’ approach and delay their entry to the market while they speculate on where things are going.
One of the important things to remember with real estate is that while the market continues to ebb and flow, people will always need to buy or sell property, so regardless of how strong or steady the market is, there is always some level of activity.
And we are fortunate to live in a growing area where there is always demand, particularly for well finished, well positioned quality homes ready to move in to.
In times gone by, people were not so concerned about the market in relation to buying and selling; they just bought and lived in a house. Nowadays, it’s a different story. People are more educated about the state of the market, and more calculated about when to buy and sell. They see the family home as vehicles for wealth creation and some people even have exit strategies in place when they purchase.
In this current transitional market, we are seeing some sellers with inflated price expectations based on sales from the highs in the market earlier in the year. Sellers do need to understand that in the delicate dance that takes place between buyers and sellers to achieve a sale, it is the buyers, parting with their hard-earned dollars, who drive the market. Sellers need to be able to respond to this.
The spate of major road works taking place in the region are having a strong influence on the local rental market. And parallel with this, we are continuing to see more and more people choosing to live in this region and either commute to their workplaces in Brisbane or the Gold Coast; or they might come to more of a FIFO type arrangement where they live and work in Sydney during the week, and fly home to the north coast for the weekend.
The reasons for the strong attraction of buyers to our region remain vast and varied but it is festivals such as Blues Fest, Falls and Splendour that have really helped to put this region on the national map, and enhance its desirability for visitors as an alternate destination to put down roots and grow a life and a livelihood.
The wattles have come and gone, and recent welcome rains have filled the dams and water tanks and freshened up the landscape. We’re now witnessing the gradual return of the early morning sun; there’s a gentle thaw in the evenings and our friends the whales are giving us a wave as they cruise south. The slide into the balmy months has begun. READ MORE . . .
Without question it’s the best time of year. Who doesn’t love cracking a shiraz on a cool night; taking in the majesty of the night-time sky while cozying up around the fire; the fresh, misty mornings; cool season beach walks; and hearty wholesome cooking best consumed while wearing your best elastic waisted pants. READ MORE . . .
The current market is great for sellers! At the risk of sounding repetitive – the local real estate appears stuck in a holding pattern that has persisted long past usual trend durations. And that market situation remains HIGH DEMAND and LOW SUPPLY. This trend is being felt across the whole region, with the only variation from late 2017 being a marginal lowering in demand conditions . . .READ MORE
Located in a a sought-after street in East Ballina, this stylish home enjoys water views and stunning sunsets over North Creek.
Contact us to arrange an inspection!
Jan Borsje 0414 282 999 email@example.com
Kendall Atkinson 0414 828 900 firstname.lastname@example.org
We are living in unusual times, with many people speculating that we have reached the top of the market. Is it time to ring the bell? Our answer to this question is, we don’t think so. Why? Well, even the most experienced of us, when we step back from the current situation to look at the big picture, are having difficulty analysing exactly what is going on. The current market is defying traditional trends and reinventing the wheel. Read more . . .
You may have noticed two faces instead of one on our listings of late. For the last few months, we have been collaborating and effectively working as one business unit – pooling resources and combining our portfolios.
And while you could be forgiven for thinking that we must have been separated at birth, we can confirm that we share no common blood BUT we do share a passion of real estate and for achieving outstanding results for our clients. Read more . . .
Here is a preview of a beautiful waterfront property we have for sale at 20 Dolphin Drive West Ballina
Contact us for further details.
Kendall – 0414 828 900 – email@example.com
Jan – 0414 282 999 – firstname.lastname@example.org
Surf’s up. Juicy apples, oranges and cauliflowers are in season. The whales are back in their ever increasing numbers. There’s the stomp of footy boots hitting the pavement on the weekends, the delicious aroma of early morning coffee, and maybe a red wine or two in the evenings – made complete with a log fire.
As the earth’s axis shifts away from the sun and we draw the doona up a little higher under our chins on these cool, dark mornings, it’s good to contemplate the every changing grandeur of the seasons. READ MORE . . .