What is going to happen to the Australian market in 2019?
Are we timing the real estate market correctly or have we bought into myths and deceptive stats?
Our most successful landlords tell us that you can create wealth at any point in a property cycle.
The first step is to determine the type of market you are currently in.
Real estate markets generally fall into 3 categories:
• Buyer’s market
Numbers of properties on the market are high as compared to previous months/years, with more than 6 months of inventory on the market.
• Sellers market
Inventory is very low as compared to previous months/years, with less than six months worth of inventory on the market.
• Neutral
Neutral markets
Are balanced and typically, the number of buyers and sellers in the market are equal.
The advantages of a buyer’s market are:
• Lower sales prices
• Buyers can command concessions
• Sellers are more open to counter-offers
• Requests for repairs can be negotiated more easily
• The buyer controls the transaction
The advantages of a seller’s market are:
• Sellers command the list price and multiple offers are common
• Sellers are less open to negotiations and counter-offers or requests for repairs
• Sellers control the transaction
Selling in a buyer’s market can have some disadvantages:
• Sellers lose equity in cooling market
• Expect to get a few low-ball offers
• Buyers will expect concessions and more likely to counter-offer
• Buyers are in a stronger position to request repairs
• The buyers control the transaction
Selling in a seller’s market is a far superior strategy because:
• Sellers can command higher prices and can reject offers
• Counter-offers are rare
• Buyers are less likely to request repairs
• Sellers control the transaction
Marlene Liontis
Tuesday, 15 January 2019