O'meara Property

Knowing how to tell whether the market is starting to change  – whether it’s trending up or down – can help purchasers determine how to go about their property search.

If the market is getting weaker, then they have more time to buy without seeing prices getting away from them. When it’s getting stronger, many wish they had tried to make up their minds sooner to avoid missing out or paying more. So what are the signs of a market on the move?
 

Trending Up:

If the market is trending up (i.e prices are likely to rise), watch for:

• Properties that have been on the market for a long time are selling.
• Increased attendance at Open Houses.
• Increased bidding at Auctions.
• When you ring an agent about a property, you find they are already sold or if you ring back to make an offer you find that someone else has got there first.
• Even really challenged properties are selling.
• Sales at auction go above the reserve set by the vendors.
• Gazumping is occurring.

Trending Down:

Conversely, purchasers can take their time if the following signs of a market slowdown leading to lower prices are occurring. Watch for:

• Little interest at Open Houses
• Many of the properties for sale have been on the market for a long time
• Auctions have no buzz and bidding seems to proceed very slowly
• Auction prices falling below reserves set by vendors
• More properties passed in at Auction
• Properties selling before Auction

Many home buyers get all excited when they find a property they like, make an offer and get it accepted all in a short time frame. They think all their Christmases have come at once. Or do they?

After the initial exultation, many buyers spend sleepless nights wondering if they have made the right choice. After all, it was a bit too easy wasn’t it? Maybe they have paid too much? Surely they must have missed something. Something must be wrong with the property.

Buyers’ remorse is not uncommon, and is based on self-doubt stemming from the stress involved in spending so much money on a transaction home owners undertake (usually) only a few times in a lifetime.

Buyers should always put in place the necessary checks (building and pest reports for example) but those who get their longed-for property purchase wrapped up quickly should think themselves lucky that they struck a motivated and realistic vendor when so many have an inflated sense of what their property is worth.