Updated: Jul 27, 2020
The Bayside Market Wrap - 25/07/2020
⚡It's an unfamiliar situation we find ourselves in at present, especially in the local property market. There seems to be little change in the activity from week to week, the market remains steady and we are consistently seeing just a handful of new listings each week coupled with a fairly balanced number of sales.
If you are a regular reader, then there is a good chance we have only recently spoken over the phone and for those neighbours aren't reaching out for a regular chat, I thought I would let you know that most of our conversations have been around the topic of when to sell and is now a good time?
And as we have discovered, the simple answer is.... yes and no.
As with most things in life, buying and selling real estate means something different to each of us. Some of us are selling our family homes of 25 years while others feel its time to liquidate the investments we made back in the GFC.
Let's have a quick look at this topic from a few angles. What we know is selling when there are fewer properties to compete with is a preferable place to be and typically this time of year we would see 20-30 new listings in the neighbourhood and at present, most weeks we are down to just less than 10.
Buyer activity for most property types is still good, and most homes are selling fairly quickly when priced correctly. The ingredients for a successful sale exist in the current market, those being low competition and a generous number of qualified buyers.
The big banks haven't stopped lending money, however, the closure of some of the biggest off-shore loan processing centres and the move to working from home here in Australia has seen a severe backlog of applications awaiting approval.
For the savvy investors among us, selling in this market could be a great opportunity to repurpose your funds somewhere else or to look at diversifying your portfolio.
If you are selling your primary residence soon, there has been some genuine concern that low stock levels could make it more challenging to find your next home. Most of our neighbours are opting for longer settlements and more flexible terms giving them time to find the right home. Offers are coming in all shapes and sizes at the moment and with the right plan and willingness to work together with prospective purchasers, there is an opportunity to find a middle ground that will work for everyone involved.
I know it might feel like selling in this market could be a big challenge, others have felt the same as they prepare for their selling journey but to our surprise and to the benefit of our clients who have recently sold, what we have found is that during this time both buyers and sellers have shown a great deal of compassion for one another, offers have been more flexible, settlement arrangements fair and responsible and to this point, property prices have continued to remain steady.
While the path to a successful sale might look a little bit different, the checkpoints, indicators and goals haven't changed. Finding that perfect buyer might take a little longer than usual, remembering that the typical sale time in our community is 30 days, while the rest of the world works on a 3-6 month average, so it's pretty incredible to note that we haven't moved too far from that number in some of the most challenging markets.
Stay positive, stick to your plan, do your research and you will be just fine.
McGrath Team Sales This Week
Victorian Auction Clearance Rate - 67%*
🌞 I hope this has been a valuable addition to your week, please feel welcome to email me at email@example.com if you have a question about the local market and until next time I look forward to seeing you out and about in the community!
Mitch - 0478896986
Sales for the week in the community