After the freaky over heated property market of 2021, buyers are finally starting to see some light on the horizon. Though if you’re waiting for a better time to buy, you had better get busy now. The banks might be ‘promising’ further falls, but the property market forces are telling a different story.
The lower number of properties available to purchase has caused auction clearance rates to hover around the 60% mark, and the number of days on market has started to level out as sellers become more realistic.
Many buyers are keenly waiting on the early part of 2023 to see prices soften, but as the borders open and migration ramps back up again, we’re expecting to see population increase by more than 200,000 in 2023, and by one million over the next two to three years.
This will lead to more competition for properties available for sale causing prices to at worst hold ground, or they’ll start to rise again.
The current market presents a window of opportunity for buyers who are in the financial position to make a move. Experienced buyers know that softer markets are when the most amount of money can be made, though it’s critical to avoid being caught up in the numbers.
Many buyers become fixated on achieving the absolute cheapest purchase price. Not only will this lead to missing out on some great purchases, but it leads buyers to fall victim to the ‘lemon’ purchase. This is because during slower markets, there’s a higher proportion of properties that have ‘unfixable’ issues or features that some buyers won’t be able to handle.
Great time for great property
The best approach in the current market is to take action on great property. It might be a property where the price has dropped minimally or not at all, and might be above the suburb median, but will mean you’re actually getting a bargain compared to what you might have had to pay in the peak.
It’s these types of properties that will leap in price as soon as the market changes again (and we all know how quickly that can happen).
How to select great property
The most important approach is to look for property that matches your needs and targets. For example, don’t purchase a massive renovation project if you’ve never renovated before.
Next, look for properties that have ‘opportunity’ embedded within them. If you’re attracted to property that has been recently updated, expect to pay at the upper end of the price band no matter what the market is doing.
Alternatively, you’ll have the most long term success if you aim to purchase property that has plenty of uplift still to be realised. If you’re ready for more details and want to know how to identify property that will continue to deliver no matter what the market is doing, check out our new guidebook – 7 ways to choose property that will perform in any market.
About the author
Debra Beck-Mewing is the Editor of the Property Portfolio Magazine and CEO of The Property Frontline. She has more than 20 years’ experience in buying property Australia-wide and has extensive experience in helping buyers use a range of strategies including renovating, granny flats, sub-division and development. Debra is a skilled property strategist, and a master in identifying tailored opportunities, homes and sourcing properties that have multiple uses. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, and participates on numerous committees including the Property Owners’ Association.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.