Timing is everything
If you’re looking to buy at the moment, you’re probably feeling a little despondent at the lack of choice out there right now.
It’s been a busy start to the year and many properties that were B- or C-grade - you know the ones, something’s not quite right, they’re not ideal in one (or many) ways, and they’ve been hanging around like a bad smell - have been snapped up. The number of ‘Under Offer’ properties begins to outweigh those that are still seeking a buyer; a sure sign that we’re in a seller’s market.
Don’t lose hope.
With many vendors aiming to sell in the busy March auction season, which incidentally is second only to the busiest month of the year being November, I’m expecting we’ll start to see an increase in supply soon. The important question being, will these new listings be good quality properties or not?
Earlier this month we had extremely strong auction clearance rates of 83% and 90%. Last weekend this came off the boil a little, down to 68%. The story behind the numbers gives buyers an insight into why properties are flying off the shelves right now.
Timing is everything when sales agents are laying out a sales campaign. We have just come off the back of two really busy auction weekends where very few properties were put to auction. On the Valentine’s Day weekend, a mere 41 properties were reported as going to auction which is very low. Last weekend that jumped to 60 properties. Buyers gathered at the few strong contenders and battled it out, and hard. I saw one 2-bedroom unit in the O’Connor go for $718k which is just bonkers. Emotions were running hot, and bidders were willing to pay a high premium to secure an attractive property.
The boring old basics of supply and demand are at play.
So don’t feel despondent if you’ve missed out lately. Or if you’re checking online every day and nothing great is coming up. I’m not hearing of a rush of good stock about to come online or anything like that, but I’m far happier to wait, draw breath, and then pounce once a good property comes along.
Keep in mind that March and April have plenty of public holidays (and school holidays) for us to enjoy, and auctions will likely be timed to avoid these. When we have a disproportionate number of auctions scheduled on these non-holiday weekends, it’s often known as a ‘Super Saturday’.
Super Saturdays are a great opportunity for buyers.
With so many properties going to auction, buyers are far more dispersed among the quantity on offer. While it’s true that the more attractive ones will garner a larger crowd, don’t be put off as it may just be a whole lot of nosy neighbours and family friends who are keen to see the result! Never assume that everyone there is attending with the intention to buy.
For now, my advice is to prepare. Get ready to act when the right property comes along and if you’re feeling nervous or unsure what to do, start by speaking to a buyer’s agent.
Property is a long-term purchase. Don’t feel pressured or let your emotions get the better of you. Take heart and have faith; there’s always another property for sale just around the corner.