Market Comment – Monday 3rd December 2007

Print This Post Print This Post

Two weeks to go and the clearance rate fell below 80% for only the second time this season. In the last two weeks of the selling year there is always impatience, both in buyers and sellers alike. We will see people going overboard at auctions in order to secure something before Christmas and not have to wait another 4-6 weeks for the Autumn season to begin.

We will also see many deals done buy anxious sellers not wanting to be left with stale properties across the break. This is always a challenge for Real Estate Agents: they must counsel their vendors when to take a serious look at offers put before them. The easy response from an agent is always “you should go to auction”. They can quote the 80% clearance rate and say 4 out of 5 will sell. Unfortunately the 80% clearance rate includes properties sold before, sold after or passed-in then negotiated to sale, and it also includes sales that didn’t attain good prices, just ordinary prices but the vendor needed to sell.

We currently have three separate clients who are looking seriously at two properties each, and have given us the brief: “make sure we get one or the other before Christmas”. We can put forward fair and reasonable offers on one, and if this is knocked back then we rescind the offer and go after the other one.

We know there are more purchasers than sellers at the moment, but that will thin out as we continue into the festive season. The properties will still be on the market, but plenty of exasperated buyers will call it quits, get into the festive season and forget about property until next year. Impatience in buyers may rise, but numbers can sometimes drop off.

Ian James

Share this Market Comment

About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.

Top