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MARKET UPDATE October 2016


Spring has come late in 2016, with early October still with a winter feel about it.

As soon as the cooler, wetter months subside traditionally spring represents a more buoyant and positive lift in local real estate markets.

More stocks to come on, more buyers are out and about, and a generally more upbeat disposition overall. We expect this year will be the same.

Right now, Applecross has 81 listings which are now up to 302 days average (median 171) on the market and Mount Pleasant has 70 properties 
on the market which are now up to 159 

days on the market average (75 days median). Stock numbers are down too about 15-20% in listing numbers.

This tells me that three things have occurred.
1) The sellable/best value properties have been sold

2) Many properties have been rested (unsold) where sellers are contemplating a new launch in spring. Watch for some more listing numbers

3) The properties priced optimistically have remained unsold as buyers continue to seek value.

We are also noticing finance from the banks is very tight, with examples of some properties coming back onto the market due to finance declines, as well as extensions being sought by brokers/banks for some finance applications as the lending criteria tightens.We see buyers prepared to engage the market and make offers where they see properties that broadly meet their criteria.

Buyer activity continues to be bold with many offers coming in way below expectations. This is quite normal as some buyers are looking for perceived distress sales or windfall opportunities.

Mostly, the sales that occur are in line with market value and we remain confident that the remainder of 2016 will be strong, in sales volumes and buyer activity.

Thank you and see you in the market place.

Ten Important Questions for Sellers

Please find below ten of the most important questions that should be considered when selling your home. Before you select an agent, it may be a good idea to have an agenda to help provide the meeting with structure and determine the most suitable agent for you. After all if you don’t have the best agent representing you, you can’t expect the best results.

1) REPUTATION: What do others say about the Agency and the sales consultant? What is the agent known for? Are they reachable? Would they cut corners to make a deal? Can you trust them with your house keys?

2) TRACK RECORD: How many sales have the sales agent made in the past 3 months, 6 months, 12 months and 5 years? You need your sales agent to be active in the current market. Sales made in years gone by do not qualify your agent to represent you in today’s market unless they are still highly active. Is the agent proven as a success over a sustained period?

3) CREDIBILITY: How many properties have the agent sold locally in the past 1-5 years? Where have they sold them? What type of properties? What do their clients say? Does the agent have written references?

4) SKILLS: What is the sales agent’s ‘Average Days on Market’? Can they close? How is their marketing skills and acumen?

5) APPROACH: How will buyers be found? How will the highest price be achieved? Does the agent understand the different types of buyers and how to achieve “Buyers highest price”.

6) AGENCY: Is the agency an active member of REIWA? What is the office/ agent personal conjunction policy?

7) SERVICE: How many written testimonials can the agent show dated in the past 12 months from satisfied clients? Do they show them on their website? (Check ours if you like).

8) RESOURCES: What are the internet capabilities of the agency? How many registered buyers does the agent have right now for the property? IS their website fast to load, attractive to buyers, easy to find?

9) RISK REVERSAL/ PEACE OF MIND: If you are not totally satisfied with the service, are you “stuck” with the agent or can you be released without penalty to appoint another agent? 

10) PROFESSIONAL AND ONGOING DEVELOPMENT: What professional training seminars has the agent attended in the past 12 months and what ongoing professional development have they undertaken to keep abreast on industry leading trends and techniques?

MARKET UPDATE September 2016

 


We see stock numbers down a little at the moment with a flurry of sales, and some early signs of equilibrium returning in the market, albeit still being tight and price sensitive. Buyers want value.

We are seeing interesting times in the local market right now, and we are selling plenty and adapting in these interesting market conditions.

The tried and tested wisdom is that the properties perceived as good value, presented well and with realistic sellers will sell, and as we have seen, many have been.We are seeing some bold, often aggressive activity and behaviour from some buyers, who some feel low SMS text offers are now the new norm. (Or aggressive verbal offers testing the agent, or extremely lowball offers). Also, some buyers trying to crystal ball gaze where they think the market is going and offering according to that.

Despite it being a buyer’s market, it isn't all the buyers way right now though. The best properties still attract top interest. Some properties sell for prices which end up with a spread of offers and interest as much as 20% apart. One sold last week where in the space of a week, 5 offers were presented and over 50 buyers viewed the home in the space of a month.  Many of our listings attract offers resulting in a sale in the first week on the market, proving the resilience of the local market, and certainly evidence no wholesale capitulation is occurring (despite the hype).

For buyers, once you have the right property, to get that property at the right price but in a way that the seller doesn't lose interest or interpret the offer as not serious, even offensive, it is important to have your finances in order beforehand, and to make a fair offer at market value. All serious sellers love talking to and dealing with the serious buyers.So for sellers, it is about finding the right buyer, as only one buyer can actually buy the property.

Especially in this market, properties should ideally be no more than 3-5% variable in the price between market value and asking price. If the gap is too large, there is a risk that the genuine buyers will reject it as "not really for sale" .

Choosing an effective strategy that allows a suitable way to discover the right highest market value in this market is critical. We at Evolution specialise in customised and effective marketing strategies, feel free to talk to us about it.

Thank you and see you in the market place.

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