2016 has seen interest rate decreases, a year of low stock levels and a Federal election. As such this year’s Spring season is a hot topic in the industry at the moment given the momentous price growth we have experienced in Sydney in the last few months and years. Clearly much of that growth has been on the back of extremely low stock levels – down almost half in some key suburbs. Already we’ve seen an increase in stock levels since the Federal Election and Sydney auction clearance levels are back above 80% for the first time in 2016. So with Spring traditionally being the busiest selling season, the questions on everyone’s lips are how big will the surge in stock levels be, and when will it peak?
If the last few years are any indication, stock levels will be average and peak late in the season – possibly as late as December. However, what we can report is that the quality of stock is vastly improving. Owners of substandard property (particularly on busy roads) have seen the recent hot market as a great opportunity to off-load. Thankfully for buyers, a lot of this lower quality stock is now gone, and we are seeing a consistent supply of superior offerings.
The advice we would give to all our buyers at the moment (and particularly investors), is to get out there and start looking. There are plenty of quality properties available on-market and off-market, and those numbers are set to increase as the year progresses. However, with the RBA recently dropping interest rates once again we should also see a surge in buyer competition as yet again money becomes cheaper to borrow.
So how can you position yourself to make a successful purchase in this hot market with so many other active buyers? What will be your point of difference that gets you that edge in terms of purchase strategy or even viewing properties soon enough to secure them? How are you going to get those sales agents to favour you above a sea of other buyers? The only way is to do what most successful vendors do – hire a professional to represent their interests above all others. The property market is becoming more professional and you need to take advantage of a professional buyer’s agent who will be your point of difference in such a strong market. You need an advocate committed full-time to securing you an outstanding deal before other buyers have a chance to compete.
If you are planning on buying this year and possibly picking up an amazing ‘Spring bargain’, you’ll need to start doing your research now. Or better still, hire a seasoned Buyer’s Agent with the knowledge, industry contacts and negotiation skills to do all the hard work for you. With plenty on offer, Spring is the ideal time to find your dream property. But with ever increasing demand, buyers really need a substantial competitive edge to secure that dream property at the right price.
Our prediction is that stock levels will remain tight and combined with record low interest rates, the high demand from buyers will make this Spring season one of the most competitive we’ve seen.
To discuss how Prosper Group can assist in this competitive market please contact us on 1300 664 373 or [email protected]