As soon as school resumes at the beginning of each year, the real estate market switches ‘on’ as buyers and sellers want to know what’s happening, new listings hit the market and buyer numbers increase at opens. This Summer has been a little different with a well stocked market of listings, which has seen 2019 begin with a BANG! As we enter Autumn, some trends are emerging with buyers and sellers adopting a ‘wait and see’ approach, to get a clearer picture of the changing real estate landscape.
In February, the Banking Royal Commission report was released. On first review it seems there isn’t anything terribly disturbing but a new norm will emerge in terms of banks’ approach to home loan lending, which we started to see last year when the changes were introduced. Overall, buyers have adjusted to new expectations with respect to lending approval already and future adjustment may still be required.
At the time of writing this piece a few days into March, we already have 3 properties Under Contract with several offers on the horizon. Early indicators and predicted success rates are promising. There have been many well performing listings and very strong results across all price brackets, with a number of homes selling under competition during the last 6 weeks, due to a combined sales and marketing strategy which includes beautiful styling, professional photography, targeted marketing and more importantly correct pricing. Homes with bay views, excellent renovations or high-end builds on premier streets in sought after locations close to the beach, Mt Martha Village and local schools, as well as those well positioned for renovation or build opportunities always perform well irrespective of market conditions. Those with more personalised renovations or unusual design and floorplan, may take a little longer to find the right buyer but we love this challenge.
In 2019 more than ever, an essential ingredient of any marketing strategy will be to determine correct pricing for the campaign from the outset. However, a quick response with a price adjustment due to lack of interest will also fare well in current market conditions. Correctly appraised homes are being well received, while those that are even a few per cent over can struggle. Be realistic and challenge your agent on how they have arrived at pricing. The temptation to get emotionally attached to the concept of value is understandable but hazardous. It’s critical to consult with your agent on the correct value of your home to fit in today’s market.
We recommend sellers start considering their ideal timing, allowing sufficient lead time to adequately develop a tailored sales and marketing campaign to achieve the best results. With Easter falling later this year, we recommend clients take advantage to go to market prior to the holiday period.
If you are considering selling in Autumn, get in touch with our team 5974 8900 to provide an accurate property appraisal and market update.