YOU’RE NOT SPECIAL
After running the numbers and having the conversations out there in the community, real estate is no longer the high flying, fast-paced industry that it once was. Real Estate it seems, is now the latest commodity to undergo a discount in order to sell… right next to the big screen TV and the latest smartphone.
Unfortunately, that means that the purchasers feel they have the upper hand and can deliberately take longer to make the decision that they were once forced to make on the spot.
With decisions to purchase being manipulated, in finance approvals and longer negotiations we are experiencing a longer time on the market which naturally forces a reduction in property value (and growth) to a normal and more stable percentage.
What we are experiencing is a return to a normal market, however, while we are in this transition we are perceived to be in a declining market (since we are coming off the back of a lengthy boom). This perception is created by the reduction in property growth compared to the previous years we have seen along with the average days on market nearly doubling in some areas.
Throughout this time, you will see a large shuffle within the industry with agents changing their colours, new flags being flown, and the kings and queens of real estate being dethroned by the new generation coming up through the ranks.
Although we are in what may seem to be a tough time for sellers, it is a mere a minor slip on the graph such as any market sees (consider the share market for instance). The agencies that will survive are the ones who become more innovative and forgo the old mentality and embrace the methods of the new.
Real Estate is certainly still selling, just not at the same pace as it was once. You will now see new and more innovative ways of selling Real Estate in order to continue the growth our market needs. We are in for some exciting times over the next year and we for one are extremely enthusiastic to help create a better and more efficient way of real estate.
Another month down and here we are edging the cusp of Spring!
Over the month of July, we
Here’s the truth surrounding our market now. The royal commission is certainly influencing our industry (and your property values also) however this is necessary to prevent another crash similar to that of 2007/2008 (yes… prevent). Contrary to belief, we are not actually in a ‘crash’ as such, merely a simple market correction. While we are seeing some locations endure a larger correction than others, we are not seeing enormous industry reductions or repossessions as you would see if we did enter a state of emergency. have seen a huge mix of emotions relayed by the media about the real estate industry such as fear of crashing markets, the frustration of tightening lending conditions and anger towards the cybercriminal community for targeting the real estate industry… however, there is still a lot of positives to our current market.
Within capital cities, we have seen a correction in Sydney with property prices falling up to -14% in some areas, however as an average, Sydney has only corrected a mere -7.4% this year. Looking at the prices entering the end of 2017 we could all see that Sydney was a false economy which was heading for a correction at some point, that time is now. This correction is a slow burn and will continue its path until price stability has been achieved. This is not the behaviour of a market crash as some would have you believe, it is a natural process which will continue to happen throughout our lifetime as history has shown (the 4 stages of the property market).
Looking outside of capital cities though, something a little different is happening where we are seeing the majority of the cities going through an increase (some upwards of 13%!). Newcastle for one has increased a healthy 5.5% this year and is continuing to see growth surrounding all the new development and sub divisions coming through the pipeline.
BUT WHY IS THIS NOT ADVERTISED? As frustrating as it is, this question can be asked with no real answer… only speculation, however, it is important to understand that while some markets are in a correction, others are in progression. It’s very important to understand the market you are in by doing your research and seeing the statistics yourself.
The reality of our market is unfortunately not clearly advertised; however, we are still in a healthy growth pattern, just not at the same pace as we once were. It is crucial more than ever to have a well-educated agent (and skilled negotiator) on your side to help you combat the false perceptions which can only hurt your property price.
A structured process and a well-organized campaign paired with the skills of a professional negotiator are what will make the difference between an average result and a life changing result.
Well, I hope this has been an eye opener for you and has spurred you into doing your own research before making real estate decisions. Until our next edition of The Real Deal, we hope that everyone enjoys their time and helps out our farmers which are doing extremely tough 😊