Wednesday, August 25, 2010

Hung Parliament = Hung Property Market?

Talk about election blues! We have a host of sellers delaying their marketing campaigns until the election hype dies down. So what should you do??

Personally I would just get on with things. Far more profound than election worries, are the dark clouds gathering over the global economy. In over 30 years of selling, it’s rarely the right time to sell. The market is either rising so you want to wait to get the most out of it, or falling so you want to hold off altogether. And when it’s stable you’re waiting for it to rise again. So you NEVER win!

Seemingly in real estate there’s always a reason to wait. I constantly see moves left too late. Growing families buying the perfect house as the kids start to move out; retirees forced to sell their high cost, high maintenance family home after they get sick or lose their partner; or first home buyers starting a family, losing their second income, and with it, the chance to buy their first home. So much stress and all because there was some reason why the timing wasn’t quite right!!

The reality…your needs are constantly changing. The choice gets back to whether you want life to simply pass you by or whether you want to optimise it. The fact is if you’re both buying and selling, you’re in the exact same position no matter what the market conditions.

Rich Harvey, CEO and founder of Property Buyer, last week said, “I believe the mood of the market has changed. With the looming Federal election this coming weekend, many buyers have been fence sitting…my prediction is the sky won’t fall in and life will continue…BUT, we are likely to see property prices go sideways for the rest of the year as the pendulum swings back in favour of buyers. The onset of the spring selling season will see many more listings flood the market, which means more competition amongst vendors.” Thanks guys for the Hung Parliament!

RP Data’s latest Property Pulse report adds statistics to the discussion of a hung property market and the time period between sales in certain suburbs. The shortest ownership time in Adelaide is for Mawson Lakes units with 146 sales averaging $320,000 and selling every 3.1 years. The longest is for houses in Collinswood with 14 sales at an average of $602,500 selling every 10.9 years. Come on Collinswood; get things revved up a bit over there! I have posted the full report here (pdf)

So, from my observations, invariably the time to sell is right now! Please don’t all decide to list your home on Saturday 16th October, like most years. Dumping new stock on the market mid spring creates major supply issues where buyers take control.

As the saying goes…JUST DO IT! Don’t get hung up on the property market!

Anthony Toop, Managing Director.
© Toop Real Estate Group

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