First and foremost, Happy New Year!
As we start 2018, the most common question we receive from buyers and vendors is “What’s the property market going to do this year?”
Our opinion is that prices will stabilise and plateau for 2018.
After an incredible five years of growth we are in the process of reverting back to a “normal” market. We do the majority of our selling in the Northern Districts of Sydney and we found that this area of Sydney was one of the first areas to take off, and it makes sense to be one of the first areas to experience the conversion back to a “normal” market.
We have been in the real estate business for many years (28 years in fact) and we have experienced boom markets and normal markets. Boom markets haven’t lasted as long as the most recent one, but the percentages of growth in previous booms are somewhat comparable. I purchased a one bedroom apartment in West Ryde back in 1991 and for $115k and sold it 3 years later for $117k……..not much movement there. In 2000 I purchased a house in Adelaide St, West Ryde for $290k and sold it exactly two years later for $495k…..that was a pretty incredible growth – 58.5% to be exact. This particular property sold again in 2011 for $800k, a 61.8% increase however this was over 6 years
History is always the best indicator and real estate always works in cycles. We are lucky to live in a sought after area in Sydney so we believe prices will stabilise and plateau for the next few years. Quality properties always do well, no matter what the market, so the question for most people is what is considered a quality property? Well buyers in our area are looking for the following:
- Full Brick
- Short walk to rail
- High side
- Good land size
- Level land
- Min 3 bedroom
- Two bath
- Two car
- Two living areas
- Single level
Not a lot of properties tick all of these boxes but if they tick the majority then you’ll find buyers competing for them. If not, your marketing and choice of agent are even more important.
Another point to consider is if you are buying and selling in the same market, it’s irreverent. Our advice would be to sell before you buy, you’ll know how much you have to spend and won’t be under undue pressure.
It’s always good to get a few opinions on market value however make sure the agent has evidence as to how they came up with that figure and they are taking into account the shift in the market. There is no point comparing properties that sold in the peak of the market. We all want the highest price and if you market your property well and have an agent that can actually negotiate you will achieve this, but just taking a property to auction with no alternative plan may land to in an awkward situation. You need honest and constant communication so you can make an informed decision.
We have recently seen so many vendors choosing agents that are promising the world only to be left disappointed and either withdrawing their property from the market or under selling. Do it right the first time, and do your research, this is a lot easier to do these days then what it used to be. Do the agents only sell at auction or can they negotiate and sell prior? If so, how many have they sold prior, how many have sold at auction, how many have been withdrawn and what are their days on market? What price did they tell the vendor verses what they actually sold for – this is probably the most important one.
At Wiggins Keenan we are extremely passionate about achieving fantastic results for our vendors and the way we do this is through negotiation and communication with our vendors and our buyers.
Call us and have a chat about what we can offer because we know we are the very best choice when selling, and want to ensure you do it right the first and only time.