Feeling like you don’t quite know which way is up?
Selling your property in 2012 in Brisbane
In an effort to keep a handle on this crazy market place, some recent conversations I have had with clients made me feel that there is some confusion between activity in the market and growth in the market.
Generally speaking it seems a number of market reports are painting a picture of impending change in the market and as a consequence, some home owners are interpreting this as meaning prices are set to rise. Given events in the past 1 to 2 years, you can’t blame owners for wanting to grab hold of any glimmer of hope that the falls in Brisbane values have stopped or at least are slowing significantly.
I love reading the varied descriptions of what the ‘experts’ say about the conditions, particularly those saying we have been dealing with a ‘risk averse’ buyers market. I don’t think that just applies to houses, do you? Ask anyone in the retail sector how they have fared leading up to Christmas and experienced people’s reluctance to put their hands in their pockets. I will just focus on property as that is what is important to me and my clients. You know what’s been going on. Decisions are taking longer, confidence remains low, financiers are overly cautious, any evidence of unexpected expenses associated with a property acquisition is producing even more discounting of prices.
However as property market analysts pour out report after report, some mentioning possibilities of prospective growth in our Brisbane market, I feel there needs to be a reality check attached to that forecast. As recently as yesterday, Cameron Kuscher from RpData was reported posing the question ‘surely we are near the bottom?’ (Sunday Mail 5th February 2012). So if we are, then it stands to reason the market will improve. Sometime! The question is when? I like Michael Yardney’s description of this stage as he (1st February) calls this current period we are entering as a ‘stabilization period’. He sees it as the phase before we see any move into the next growth phase of the property cycle. He also expects it to last for some time, a view shared by a number of commentators recently.
As I mentioned above, my concern is with some home owners interpreting any mention of the market growth in Brisbane as an automatic assumption that prices are about to rise. I believe that with interest rate reductions occurring and a few more buyers showing interest in the market, the increased activity is simply that. Increased activity. Getting back to ‘normal’ market activity, buying and selling homes as owners needs change. The market is starting to tick over as it should. It’s not dead yet! Be cautious of seeing this as a signal that we will be experiencing rising prices any time soon as I feel we cannot sustain that at the moment.
Without trying to dampen your spirits, this is just a little word of caution for home owners thinking of entering the market. Be real. Stay real. You can feel a bit more excited after the slippery slide of 2011 here in Brisbane because there IS evidence that the ‘days on market’ have dropped somewhat. Now, that is a good thing. Get the facts and make sure you are being given the right information. If you are being quoted a price that seems too good to be true, then possibly it is. You don’t want to play into the hands of the market and find yourself floundering about while other owners are being more realistic in their expectations. Those buyers out there are a fussy bunch right now and wont part with their money willy nilly. They will walk on by your place to get hold of something they think is better value. Value! That could be the word of the moment, really. Nip on over to our FB page if you have a comment about this. Love to hear from you.
6th February 2012
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