Wednesday, July 20, 2011

38 days to sell…BEWARE OF SPRING

38 days to sell…BEWARE OF SPRING

Yes - it’s 38 days till spring and if you’re thinking of selling - then spring is definitely a time to be wary of. WHY??

Typically - everyone thinks spring is the best time to put their home on the market. The truth is spring - and especially late spring - is when the market is at its most vulnerable. Every year we remind sellers of this. Every year most ignore the warnings and guess what, every year we have to deal with the frustration of long periods on the market and softening demand.

Personally, I believe if the Reserve Bank doesn't work out that we need an urgent interest rate cut - they are completely out of touch. Confidence is teetering on the verge for most and a good old shot of lower interest rates now, would stabilise things in our backyard.

Look at what is happening globally - the Murdoch saga and the collapse of 'News of The World', the international financial turmoil and the Federal Government totally out of touch with Australians - no wonder confidence is on the edge.

The reality is we now have more new buyers starting to look for the perfect property. There is an opportunity to buy well, but there are hardly any properties to buy. Normally this would lead to big price hikes and upward price pressure. Of course, the reverse is occurring - this is a direct consequence of consumer confidence.

What happens then in spring? Suddenly a whole heap of new properties come onto the market and unless interest rates drop, or there is some amazing positive world event, we risk seeing a number of very untidy events in real estate.

And what about the stock market…whew! Property is looking pretty good compared to shares for someone as simple as me. DO NOT miss next weeks SHOWDOWN Property Vs Shares on ToopTV - Wednesday at 1pm. We have a studio debate on this very subject - it will be awesome.

Anyway, all this is irrelevant if you are buying and selling in the same market - and the good news is you will save money on Government taxes and Agents fees. The smart money would get your property sold now, and buy late spring!


John Elkin said...

The smart money sold six months to a year ago and plans to buy in two to the years mate!

Anonymous said...

This is a very optimistic new for home buyers and I am very excited at the prospect of real estate market crash. If the trend continues my kids will be able to buy something without becoming mortgage slaves for the rest of their life.

Anonymous said...

If the RBA are out of touch, its because they need to list interest rates. The sooner the property prices drop, the better. Sure, it will hurt a few people, but in the long run, high prices will hurt more people and keep more from home ownership. More money left in the pockets of average Joe. Real estate people didn't complain much in recent years as they make loads of money as property prices rose so much. Time for realism to hit the market now and if the prices crash, the great.
In the process, lets hope the govt restrict home owner boosts to new builds, hence increase supply and putting more pressure on prices and also consider getting rid of negative gearing.

Albert said...

"but there are hardly any properties to buy"

Are you sure about this? Others are saying we have almost twice as many homes on the market now vs this time last year. I suspect the credit boom is coming to an end.