For anyone paying close attention to the market you may be forgiven for thinking it’s a bit all over the place at present (because it is).
On one hand agents constantly harass owners spruiking how hot the market is, yet if you have visited any auctions lately you may have witnessed awkward on a whole new level.
Side note, I think the first five minutes of a public auction may be the most excruciating minutes you can ever endure (a close second was watching the British royals attempting to make DJT feel really special).
In my opinion, this duality is caused by a simple formula…too many agents, not enough sales. Agents are afraid that if they tell owners how it really is, they won’t get hired (and this includes buyer’s agents).
So…I’m reporting to you live from the ground and I can say that this market is still patchy. Our team has successfully secured 10 sales in the last 14 days but none of them have been easy (not bragging, just establishing credibility).
Probably the biggest shift I have noticed is buyers increasing aversion to risk i.e. buying before they sell. This has meant that we have had to negotiate longer settlements and/or help sure up prospects with interest in their own property before they gain the confidence to commit.
Every day people ask me why the market is like this and my theory is it’s just due to a sense of uncertainty. Actually, what I really think is the world is worried about America…but I’m going to leave that be.
The thing to remember is that value in the market is a double edged sword. By that I mean if you see a property that you think is a good deal, you may just have to bake that into your sale.
In fact, over the years I have noticed that the first sign that a market is changing (or has changed) is buyers boasting that they feel like they bought well.
For clarity, and in anticipation of the inevitable backlash I will get for writing this, I don’t think we are in a bad market but I do know that it’s not as hot as some of my contemporaries would have you believe.
This week’s message, if you buy first just make sure you cover your tail.
Until next week,
David Murphy