Can you smell that?
Its as comforting as the smell of fresh cut grass; that cleansing inhale as new rain hits the dry concrete; the aroma of steaming coffee as you enter your favourite café…
Yep, that’s right folks – time to enjoy the settling fragrance of a level(ling) property market.
Let’s ignore the smell of what the Bears might be leaving behind – “Bears? What Bears?!” Read on to find out.
Buyers have regained their sanity – they won’t chase any old price at the moment.
Some sellers are losing theirs – “What?! My property is NOT worth X anymore?”
Keep calm – whether you are selling through and agent or ready to sell your own home, everyone still has their shirt on.
If you listened or watched all the economists and opinion setters who have gathered on the fateful ship – HMS Doom and Gloom – you may well be jumping on a high speed tug boat, with bull horn in hand, ready to demand the Doom and Gloom drop anchor and let you on board for the all you can eat and drink voyage to economic oblivion.
Or, you could stick with a brave band of rebels (me included) on land, who know the Doom and Gloom will run out of steam and limp back into port with its passengers wondering why the hell they set sail in the first place. Not much will have changed here back on Terra-Firma.
Yes – there has been a slight ‘correction’ in property prices (mainly driven by Sydney and Melbourne), but what goes up, must come down – gently.
There is always someone calling a ‘Bear Market’; prices in stocks and property sliding – and the Bears have been active for a few years now – predicting price drops of 15%, 20% and some even up to 40%.
NOTE: Stop watching tripe like 60 Minutes!
At the end of 2012, as we were recovering from the almost ‘arse falling out of pants’ correction of 2009/2010 – the median price in Sydney was $594,000.
In March 2018 it hit $1,150,357!!
Do Bears sh*t in the woods?
So, how long can we bear the Bears who would prefer to sh*t in our backyards and keep scaring the sh*t out of us?
It’s still all hands to the wheel for us.
Yes, the state of any market is determined by the numbers, but consumer (buyer) behaviour at any given moment can be accurately measured by response to the stock on market – enquiries on property for sale.
If you prefer the hard numbers (with a human touch), read this article by respected Core Logic Economist, Tim Lawless. Tim is one of the rebels on the dock waving goodbye to the HMS Doom and Gloom.
As for ‘frontline’ measurement – through buyer enquiries (action) – it’s still all hands to the wheel for us.
The Phones Ring and the Emails Ping from buyers wanting to enquire on and inspect our clients’ private house sales.
Sure, the numbers are down a little (5-10%) since the Banking Royal Commission, which has ‘forced’ the banks to (temporarily) tighten up on lending; but the enquiries just keep flowing and the emails from our sellers saying, “I’ve got an offer” or “I’ve sold!” don’t seem to have waned too much.
The sellers who have adjusted to the softer demand from buyers are reaping the rewards and can move onto their next purchase with the leverage to be able to drive a bargain at the other end.
A recent article I wrote outlines how to take full advantage of a less confident, but still active market.
As I’ve said before, and I’ll say it again, this is the ‘blip’ we probably needed so everyone could take a breather, reset and go again.
PSST: I’ll let you in on a secret. Google: 18 = 4 + 4. Tell me what you find.