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.