Sydney Real Estate: Do It Now: Key Signs Attracting Home Buyers

Spring has traditionally been a popular time to list and buy properties.

For sellers, brighter weather means homes are shown in their best light and for buyers, there are more options.

This time last year, buyers were in the back seat, as the PropTrack home price index revealed that annual price growth was tracking at its fastest pace since 1989.

But what a difference a year makes.

Today, that same index reports that every capital city, and newly prosperous regions, were all in negative price growth territory.

Steve Mickenbecker, a Canstar group executive and financial commentator, said buyers were now getting back in the driver’s seat.

“I think this spring is going to be a pretty good market for buyers. Buyers should approach it knowing they have options,” he said.

“There will be more properties on the market, there will not be the deficit that we have seen in recent times that was driving up prices.

“And there will be fewer buyers around.

“The balance of power has shifted and shoppers now know that they can enter this shopping season without feeling the fear of missing out that has been the driving force for the last few years.”

MORE: Australia’s richest man slams ‘idiotic’ RBA

NRL Finals Stars Make Big Money Off The Field

THE NEGOTIATION IS BACK

Reece Coleman, buyers’ agent and chief advisor at Maker Advisory, said buyers are taking back control of what was once an out-of-control real estate market.

“Buyers have been sitting on the sidelines and I don’t see any reason to continue sitting on the sidelines,” he said.

A cooling market translates into providers accepting more realistic prices, and in many cases, those price corrections offset any increase in interest rates.

“The current decline in property prices and the ability to negotiate rates make now one of the best times in the last five years to buy property,” Coleman said.

“Sellers are serious about selling their homes and not just looking to win the lottery, and smart homeowners are taking this opportunity to make a move because they can see this is an economic climate where everything is aligned.”

MORE OPTIONS FOR BUYERS

Listing numbers are increasing and buyer numbers are down, so buyers face less competition for more stock. In August, new ‘for sale’ listings in capital cities were up 8.7 percent compared to last year, while regional areas were up 3.2 percent, PropTrack data shows. Total buyer demand was down 6 percent nationally by the same metric.

“There are definitely more opportunities for serious buyers right now,” Coleman added.

“Every agent seems to have a pocket full of off-market listings. People have been hiring agents to appraise their homes, but not necessarily hitting the ‘go’ button until they see how the spring market goes. So my advice would be to put pressure on the agents because they will all have properties that they know will come on the market.”

RELIEF UNDER THE HAMMER

AuctionWorks auctioneer Jesse Davidson said the reduced number of serious buyers meant competition was winding down.

“Buyers will start to see more options at more reasonable price ranges. People are now realizing that we are off the dizzying highs and prices are starting to level off. Buyers get a little more power than last year and less pressure with fewer registered bidders at each auction.”

Davidson said his auction advice to prospective buyers remains the same regardless of market conditions.

“Once you’ve done all the important due diligence, then get involved. There is never a time when a non-participating buyer can negotiate after the auction if there was another bidder.

“It doesn’t mean your first offer has to be the best, but rather put yourself in the best position to buy the asset. From there, just monitor your increments and when you reach your limit, stop. With interest rates on the rise, now is not the time to buy over budget.”

MORE: Ultimate Spring Market Report for Buyers and Sellers

FLEXIBILITY WITH INTEREST RATES

Although interest rates are rising and borrowing power is falling, Coleman said buyers should have serious talks with their lender.

“If a bank recommends an interest rate of 4 percent, a good broker should be able to negotiate a 3-high rate with that same bank,” he said, adding that buyers should also shop around for competitive prices. fixed rates

“The fact that many major banks are reviewing fixed rates and, in many cases, lowering them, is an indication that they expect some relief in interest rates in the short and medium term. Our advice to clients is not to accept the bank’s first offer on interest rates, as they are now more negotiable than in the last three years.”

SIGNS THAT WE ARE IN A BUYERS’ MARKET

Makers Advisory’s Reece Coleman said many markets are experiencing some of the most favorable buying conditions in years.

More realistic prices – The fear of missing something is over. Buyers have recently been able to acquire properties at the most reasonable prices in months, and in many cases price corrections are offsetting any increases in interest rates.

Low fixed interest rates – While there has been a lot of news about the increase in the official cash rate, not so much noise has been made about the cut in fixed term rates. Behind the scenes, banks are now offering bigger discounts on advertised rates than during the pandemic.

Property rebound ahead – There is no doubt that prices are falling and will continue to fall in the coming months, but not forever. Economists are already forecasting the timing of the next recovery. ANZ economists anticipate capital city prices falling 18 per cent next year before rising again in early 2024, starting with a 5 per cent rise.

Rents are going up The good news for investors is that rents across the board are up 7% according to recent data from PropTrack. It is clear that yields in many markets are dramatically higher and those gains will more than cover the costs of higher interest rates for investors.

MORE: Bigtime’s plumber chases a $15 million payday

Liberal politician breaks Kings Cross record

The great victory of the cult Australian actor in the city center

Originally published as Real estate Sydney: Do It Now: Key Signs Attracting Home Buyers

Read related topics:sydney

Leave a Comment