Blog / Winning Business
From nuts to normal by Lee Woodward
Dear Home Owner,
The last two years in real estate have – to put it simply – been nuts, but now the market has transitioned back to normal. As the daffodils came into bloom this September, the real estate bubble burst and we were all reminded how broader economic conditions influence the Australian real estate market.
First, the falling Shanghai stock market sent shock waves through the global economy – what would that mean for Chinese investors, active investors in the Australian real estate market?
Secondly, APRA tightened lending conditions for investors – suddenly it was harder for investors to get a loan.
Thirdly, out of the blue, Westpac lifted interest rates by 0.20%. Ouch. After the last few years, we’d forgotten that interest rates can in fact go up. Finally, in 2016 the Sydney Morning Herald predicted price reductions of 7%.
Reality set in for buyers and auction clearance rates crashed from 85% to less than 66% in Sydney and Melbourne and less than 60% in other capitals. Buyers finally began to take a breath and think before they made an offer. An unprecedented amount of property came onto the market and for once in a long time, vendor expectations had to meet what buyers were willing to pay.
So in these current market conditions, what does it mean for you if you are thinking of selling in 2016?
The hysteria and craziness has most certainly gone and the market has returned to normal. The chance of snapping up a bargain has increased. The next generation can finally think about entering the market and if you are thinking of selling, the next property you buy will be affected by the current market transition too.
However, one thing has not changed because it never changes. Buyers will always – always – pay a premium for an exceptional home in a good location. Buyers are out there, and always will be, for outstanding properties.
It is imperative though, if you want to sell, that you put immense energy and effort into your preparation, property presentation, marketing strategy and process. More than ever, this is the time to profit from the knowledge and expertise from someone who knows the market and what buyers want.
Draw on our experience and expertise. We are here to help. Have you received our knowledge book, “Maintain your home for profit”? Please text your name and address to me on XXXXXX so I can have one delivered to you.
If you’d like to discuss your real estate goals for the year ahead, I’d really encourage you to profit from our knowledge. To arrange a meeting with me, please call or text me on XXXXXX or email me.
To order Lee Woodward's book - What to Say, What to Send, please visit realestateacademy.com.au
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