I have seen a definite change in the market over the last several months.
Being at the grass roots level, I am increasingly hearing Buyers complain there is less and less ‘decent’ properties out there. The Buyer’s perception of a decent house is a quality home which is priced right (not necessarily priced cheap). Most Buyers understand they need to meet the Market just as much as Vendors do.
Since around November 2011, I have noticed many more genuine buyers are proactively looking for properties. This may seem contradictory to what is often touted as a ‘bad’ market, but I feel one needs to look deeper than a sweeping statement.
Certainly prices have reduced from their peak, but what continues to keep the Market going is the fact there are still plenty of Buyers purchasing, and this activity has certainly increased recently. This may be contributed in part to the recent rate drops, but certainly in speaking with people, there appears to be a growth in confidence in the Market.
The perception of a slow Market is mostly created by Vendors over pricing property which results in these properties remaining untouched. The general public see these homes sitting for months on end or hear of the high average Days on Market (DOM) and perceive it is a bad market. It’s not.
Misinformation (whether incorrect perception or inflated opinions from Agents to win favour), is one of the main reasons I take the time to send my clients Sales Reports quarterly, which are factual, unbiased and uncensored. These are available free by clicking the following link: CLICK HERE
As I deal in this transparent manner, my Clients enter the Market realistically and are attractive to those Buyers ready to purchase immediately. No opportunities are lost. This is illustrated by the fact my average Days on Market for the past 6 months is 17.44 days. (This is days taken from the date of listing to the date of the Contract). The market average is approximately 90 days (depending on the source, some quote much higher).
Remember too that the Media tend to report off figures which have a lag time of several months. Whether they glean these figures from RP Data, PDS Live or another source, the sales prices often don’t show for several months and so this information is behind the market. In reality, unless there are massive swings in the market, this lag will have little effect, but I do find talking with those in the Market today is the best indicator of the level of confidence in real time.
All in all, this increase in Buyer confidence is great to see. If this can be sustained, we should see a turning of the Market for the better.
Shawn
