We are seeing an enormous amount of new stock either come onto the market, or about to come on. I received 5 requests yesterday alone for appraisals, all for sellers in this area. There are currently over 200 properties all prices in Applecross and Mount Pleasant on the market. During the height of the boom, it was closer to 100.
I am finding that there are a lot of “aspirational” sellers, still unaware of current market conditions and still unaware of the high supply, and relatively low demand.
Buyers are still cautious, even playing “wait and see” with the election, and the market conditions generally.
If there are buyers, they want value, real value. Properties must either be really well presented “perfectly”, land value or outstanding value. Otherwise, buyers are happy to wait.
I caution sellers to look hard at all reasonable offers. This is not a market to be too cute over price if the offer is close.
I have seen buyers dig their heals in and say “that is all I am paying”. If in this market, as a seller you do not need to sell, and do not want to meet the market, my advice is “don’t”. The chance of a magical buyer paying way over the market is rare and occasional stories usually are in unique circumstances.
If however you want to buy and sell, then sell now at highest fair market value, and then be a buyer with a strong negotiating position. It all works itself out in the wash up.
In Applecross and Mount Pleasant in the $1M to $2M range there is currently no fewer than 69 properties for sale on the market. Since 1st January 2010 there have been 46 sales in this segment, or 6.57 per month. That means it will take 10.5 months for all of the current stock to sell, without any new listings coming onto the market. Is that a buyer’s market, yes.
Is it a good time to sell? Yes if you do the following.
1) Price correctly
2) Present really well
3) Choose the right agent
4) Have a first class marketing campaign
5) Assess all offers on merit, pragmatically.
Is it a great time to buy? – Probably doesn’t get much better.
1) Interest rates steady and still low
2) Good choice/ supply
3) Buyers market
4) Value already built into many asking prices
5) History says property still a good long term buy and hold.
What is my forecast?- Election out of the way soon, Spring here soon, strong sales months ahead until Christmas.
Thank you and see you in the market.