Clearly, it’s exceedingly challenging with government lockdowns forcing home and business owners into uncertain economic times.
Lack of housing availability and low interest rates are pushing house prices up with investors leading the surge in buyers, making it difficult for first-homers to get their own buy in.
Lending is also being headed by owner-occupiers and first-home buyers – likely upgrading their home to the ideal staycation.
With international travel unlikely for quite some time, this focus and money is being directed to home investment with homes, pools and pool area renovations.
Despite lockdown, the housing boom continues in a firm sellers market where restrictions are affecting listings, keeping demand and prices high.
It is telling however, while home values are up 1.5%, this has been the slowest rate in the last 6 months. As we watch the growth trend losing momentum, it’s not coming where expected. Affordability – rather than lockdowns – is the reason rates are dropping where the cost of housing has risen 11 times faster than the wages growth – the highest since 1989.
Stock and demand are keeping auction clearance rates extremely high, though lockdown conditions see properties sold prior to the auction taking place well above expectations. Meanwhile, as houses start moving out of reach, sales will turn to units, duplexes and townhouses: on average, a Sydney unit costs $470,000 less than a house.
With the delay of the traditional spring selling, there is plenty of pent up buyer and seller energy out there. Once restrictions are lifted, no doubt more property will become available on the market.
We deserve the highest price for the most important financial investment we’ll ever make in our lives. When we’re reaching for the highest price, ideal conditions are when there’s competition – not in isolation. The less options buyers have to choose, the less room there is to negotiate. In a market saturated with property and low buyer demand, crafty buyer negotiations will push prices down.
Want to secure a premium price for your home? Let’s talk over coffee – before the buyer chooses another in the area, for less.