- Seller and buyer expectations to be tested as the middle ground becomes hard to find
- New market with prices resetting, but buyer demand still alive and well
- Nearly half of properties selling prior to auction, with no Christmas wind down yet
Vendors are warned to set realistic price expectations to avoid disappointment, in the latest REINSW market forecast with Tim McKibbin.
Looking at the week ahead, Mr McKibbin expects vendor and buyer expectations to be strained as agents report difficulty finding compromise between the two.
Negotiations increasingly harder to navigate
As stock levels recover and price growth begins to lose steam, buyers are gaining confidence to walk away when the middle ground between buyer and seller expectations is elusive.
“The last few weeks have delivered a shift, and vendors should be mindful that while price growth has peaked, they’ve most likely already enjoyed the benefits of the boom in the form of capital growth,” said Mr McKibbin.
The REINSW Chief Executive Officer advised sellers to set a practical price point that won’t work against them.
“It’s critical for vendors to listen to their agent, who best understand a buyer’s motivation and expectation of value.”
Tim McKibbin, REINSW CEO
He added that buyer demand continues to thrive, with auctioneers booked up until Christmas and no festive season wind-down in sight yet.
“It may be a new market, prices may be re-setting, but activity remains intense,” he said.
Properties selling prior to auction
Despite auctioneer schedules teeming, nearly half of properties with auctions arranged are selling prior.
“Clearance rates have dropped from the 80 percent mark to the low-to-mid 70s and we expect a similar result this week,” said Mr McKibbin.
Mr McKibbin said more deals are being finalised throughout the week, relieving the pressure on Saturday auctions where he expects only two to three competitive bidders, in contrast to the 15 or so regularly seen a month ago.
“Agents are best placed to provide vendors a temperature check leading up to auction day and if a good offer is received prior, agents will recommend vendors take it.”
Tim McKibbin, REINSW CEO
“Agents may have to work harder to get their vendors a good offer and in the new
market, a good offer is what vendors should expect,” Mr McKibbin concluded.
