Over the last year, TV reports, newspaper articles and social media posts have all been eager to perpetuate a message of doom and gloom for the real estate market. But key indicators are now pointing to the fact that the worst is over.
We asked two buyers’ agents about the challenges the market has posed and what they predict for the days ahead.
Buyers Agent and CEO at propertybuyer.com.au
Challenges: Lack of market confidence
Our biggest challenges were a lack of market confidence before the State and Federal Elections and a lack of motivated buyers. Buyers tend to follow the herd, so the challenge was to engage them in a falling market.
Actions: Take action
When the market changes, there’s no point sitting back. You have to adapt your marketing and your message to show buyers that you can add significant value to their situation. We predicted the bottom of the market in June/July, and advised our clients to take action. We talked sense to them, giving a long-term perspective of the market and the latest updates.
Predictions Brighter future
The future looks much brighter with Spring set to rebound with more listings. Market sentiment has seen more genuine buyers come out of the woodwork. I believe the market will have a continued modest recovery over the next 12 months. With credit still tight and buyers cautious, I expect a more balanced market once the traditional volume of listings hits the market.
Director at House Search Australia
Challenges: Less urgency
Financing difficulties, a lack of confidence in the market and fewer buyers prepared to commit to a purchase have all posed difficulties for buyers’ agents. The changing market caused buyers to falter, as they waited for what they believed to be the bottom of the market. This resulted in fewer buyer enquiries, as the urgency of previous boom conditions abated.
Actions: Relying on data
Statistical information has been more important than ever before. We use this information to assist buyers with their decision making. We also carefully assess each buyer and their situation to ensure they clearly understand the changing market and are comfortable with their final decision to purchase.
Predictions: Muted growth
In suburbs that continue to experience high demand and have a smaller supply of listings, values remain solid. I believe that capital growth will certainly be more muted and enter a plateau phase over the next 12-24 months. This presents an opportunity for buyers who were locked out of certain areas due to rampant growth.
This content first appeared in the Sep/Oct REINSW Journal