A swell in the number of listing this spring will bring positive changes to the property market. House-hunters will already have noticed a rise in homes for sale earlier in Spring than usual offering choice, better affordability and less pressure when it comes to finding a new home. It has started to shift into a more traditional housing market along the eastern seaboard.
As listing slowly rise, we can expect price growth to still be above average but remain at a more sustainable level. There won’t be a dramatic fall away of prices in markets such as Sydney and Melbourne where demand remains strong, however, we won’t see street records continuously being broken.Vendors need to be mindful we have enjoyed an extended period of incredible growth and may need to adjust price expectations.
The media is still going to quote these spectacular sales results but I would suggest, that these are likely to become a bit more one off. It will be home by home. Quality will still stand out. Real estate that offers a “lifestyle’’ and that is well presented, requiring minimal updating, will be on the top of buyer’s wish lists and should fetch top dollar. Even average agents have done well over the past two years but as we shift into a more traditional scenario where negotiations will be a key, it will be important for vendors to do their research.
They need to ensure their agency has marketing plans and a good active database. Proper preparation of a property for sale such as styling or minor home improvements on the advice of your agent could pay off in the current market. Buyers typically come within the first two weeks of any marketing campaign.
There is a risk that if vendors have unrealistic price expectations and turn down offers leaving their property for sale for an extended period, then the property will lag on the market. Changes to investor lending is anecdotally already starting to have an impact on the market. They are being replaced by cashed-up buyers who previously missed out on purchasing either because of strong competition, price growth or lack of supply over the past 18 months.
About LJ Hooker
Established in 1928, LJ Hooker has grown to become Australia’s best-known and most trusted real estate brand.
LJ Hooker features one of the largest residential and commercial sales and property management teams in the industry with more than 8,000 sales professionals, property managers and support team members.
With a franchise network of more than 700 offices across the Asia Pacific including Australia, New Zealand, Japan, Indonesia, Papua New Guinea, India, Vanuatu, Dubai and Hong Kong, LJ Hooker sold more than AUD$19 billion in real estate last year. The company is one of the largest property managers in the region, managing 130,000 properties totaling $75 billion for investors across Australia and New Zealand.
LJ Hooker also provides a full suite of commercial services across Australia and New Zealand including buying, selling and leasing real estate for commercial or investment purposes. Under its LJ Hooker Commercial brand, LJ Hooker has 28 commercial offices supported by 300 commercial experts across the office, retail and industrial sectors.
LJ Hooker is the only real estate agency to offer its own brand of home loans. Established in 2005, LJ Hooker Home Loans is experienced in the non-bank mortgage market with a unique business model of home loan franchisees and loan writers who operate nationally. The LJ Hooker Loan book tops $4.9 billion with more than $1 billion in loans settled annually.
For more information visit ljhooker.com.au
Grant Harrod – CEO LJ Hooker
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.