The arrival of Autumn has provided us with an opportunity to review sales activity levels and provide you with a timely update on what is happening in the property market across Victoria.
First and foremost, it is becoming clear that the dynamics within the real estate market have changed. Whilst some properties are achieving sale prices that are exceeding expectations, these results are becoming less frequent in a market where buyers have become more conservative compared to what we saw in 2021. With the volume of available property increasing, the ‘fear of missing out’ that was fiercely driving competition a few months ago appears to be softening. In today’s market it is more common to have one or two buyers competing with offers, rather than the three to six that was common six months ago.
With this being said, it is important to remember that current prices are still exceptional, despite buyer competition dropping. What it does mean, however, is that your choice of agent has become even more critical when planning a sale. We are finding that those agents whose skill set includes outstanding strategic thinking and negotiation abilities are proving particularly valuable.
An analysis of recent auction results shows that around one third of all scheduled auctions are selling prior to auction day. A further one third are selling ‘under the hammer’, with the final one third being passed in and either selling through further negotiation in the days or weeks after, or remaining on the market without a result.
This type of market means that anyone selling their property needs to stay focused on feedback from the market, particularly in the first week or two of your campaign. If you are not getting a positive response from buyers in the first two weeks, you need to respond immediately or you run the risk of being part of that one third who are still hoping to achieve a result after their main campaign has already run.
We also need to keep in mind that the market can change from one week to the next. You only have to look at the events of the past few weeks, both in Europe and in our northern states, to realise how quickly consumer confidence can change.
Let me be clear, from an objective point of view most sellers are still achieving prices that range from very good to outstanding, but it does require careful planning, experienced advice and a responsive approach in order to maximise your result. Don’t forget that a more balanced market provides greater opportunity to achieve an enhanced result in both selling and buying when you take advantage of best practice advice.
With this in mind, if you are weighing your plans for the coming months and would like some experienced and objective guidance on how to achieve your property goals with a minimum of stress, our Advocates are always happy to assist. So don’t hesitate to give us a call.