The media usually catch on slowly. It’s easier to sell papers whilst printing gloom and doom. THE PROPERTY MARKET IS ALIVE AND BREATHING.
After last weeks multiple bids at auction, I was engaged in 4 private sale negotiations last week. All of which had multiple potential buyers. One was purchased by another party who were willing to pay well above market value. We were successful with three others, with two at fair and reasonable prices, whilst one was very good buying.
Our enquiry levels which had increased to yearly highs through last month, mainly by investors, are now being matched with heightened enquiry from owner occupiers. The majority of people requesting help to purchase properties are looking for assistance in knowing what to pay.
Anyone can put their hand up at auction, and if yours is the last hand up you win. BUT HAVE YOU? If a good auctioneer pushes the price up to $900,000 and its not yet “on the market” and you put your hand up to “earn” the first right to negotiate; What are you going to do when you get inside? What happens if the property is only worth $850,000? What are the rules regarding negotiations after an auction?
If the agent is asking $650,000 and you bargain him down to $630,000, you will be feeling very happy until you find out the property is only worth $600,000.
Property prices are about to jump again. Rentals have increased in some areas by 15%+ this year so far. Most economists are in agreement the RBA is not about to raise interest rates any further and may even drop them closer to the end of the year. I always assumed February or March next year would be the next jump in the property market, I now think this will be sooner rather than later.
If you are thinking about buying property over the next 12 months, why don’t you come in for a no obligation chat.
Ian James