Demand is still there
In this guest post, LJ Hooker CEO Grant Harrod dispels some misconceptions in the marketplace.
Since the start of spring, the market has entered a period of adjustment with an influx of listings causing price growth to steady.
Sydney price growth has ‘slowed’ to around three percent in the quarter: a figure that, when put into perspective, other cities would be content to achieve in a year. Overall, we see the current conditions as a positive with increased listings turning into high volumes of sales, coupled with strengthening regional markets.
Supply may have increased but the fact is demand is still there. As we all know every property has a buyer, it is just a function of price, so managing vendor price expectation at this time is key.
We are anticipating a soft landing as we ease back into a more normal buyers-market.
But media sensationalism has painted a very confusing picture of just what is happening out there.
People are reading about extraordinary sales and the next day they are being confronted by much different headlines of an unstable marketplace.
Property is not a day-by-day proposition - it is and has always been a long-term investment.
As more stock becomes available we expect prices to level but quality will continue to stand out.
One of the challenges during the peak of the market was homeowners were fearful of selling before buying, which led to an overall reduction in the number of properties for sale. This has, or is now changing, and is providing home owners with more choice when looking for their next property and, in turn, boosting their confidence.
We expect this will keep sales active, enabling people to buy and sell within the same market.