Buyers aware of increased competition: Weekly market wrap with Sam DodimeadBack
Domain reported an 84% preliminary auction clearance rate for 3 October, indicating there is no relief in sight for those seeking established properties. There has been an increase in the number of quality properties coming to market; however, this has been met by an even greater increase in buyer demand. This imbalance is especially noticeable where values are under $1,000,000. Whilst there are strong results being achieved, there are still parts of the market which are especially price sensitive, making it important for vendors to keep a firm grasp of their reality balloon.
Enquiries across my portfolio of projects located throughout Canberra demonstrate significant demand for off-plan property. I have noticed buyers are aware of increased competition and how this has changed market dynamics and created urgency for them to act decisively. This has condensed timeframes of being ‘actively’ in the market, thus placing greater importance on agent responsiveness.
Twelve months ago, it was advantageous for agents to meet prospective buyers after they had inspected multiple properties. Lower levels of competition allowed buyers to approach sourcing a property at a leisurely pace. Now it’s not uncommon for buyers to make a decision on the spot if a property is suitable. Once a decision has been made, there seems to be reluctance to consider alternatives. This increases the importance for agents to be proactive and able to confidently assist with progressing decisions as required.
All markets are comprised of participants with various perspectives on how they interpret conditions. Even though new enquiries, buyer inspections and sales volume compared to available stock on the market indicate this is an upward cycle for values, there are some people who seem to believe otherwise.
Relatively consistent market conditions in Canberra hide the compounding pain caused by indecision. Using results from Corelogic’s Home Value Index showing values increased by 1.5% over the last quarter, had you delayed purchasing for the quarter and purchased at the median value, you would need to spend an extra $9,668.71. Which in context of buying a property may not sound like a lot, but if given the choice to save around $100 per day wouldn’t you take it?
With Sam Dodimead, local property professional and host of Canberra Property Podcast where you can get to know the consultants contributing toward deliver of new buildings. Stream from wherever you listen to podcasts.
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