Low Stock Levels – What it Means for Buyers & Sellers

Low stock – what it means for sellers 

It means it is a phenomenal time to sell!  Right now there is such an opportunity on the Northern Beaches. Sellers can take advantage, not only of today’s ongoing strong market momentum, but also the lack of competing homes to sell for an unbelievably high price. Lack of competition is a benefit most sellers will rarely take it into account and it can really have an incredibly positive impact on the end sale price for your home.

People who are selling on the Northern Beaches to move to softer markets are in the strongest position right now. After a huge run of growth, we often see downsizers and young families realising those gains and selling to make a seachange to more affordable coastal communities at the same time. They get the best of both worlds – they achieve an amazing sale price and secure a much more affordable new home. South-East Queensland is proving to be a very popular destination for Sydney seachangers and we are seeing a bit of this now, with a lot more expected to follow in coming years. The Central Coast is another popular location for seachangers.

Low stock – what it means for buyers 

The short answer here is less choice. Once you have weeded out the poorer quality properties there is not a lot of options. Be careful not to settle for an inferior property in an inferior location simply because you are getting frustrated by the market. You just need to ensure you do everything you can to put yourself ahead of other buyers. And there is actually a lot you can do! Firstly, you must accept that it’s a heated market and you are probably going to have to pay a premium price. If your plan is to buy for the long term, this isn’t really a big deal because in 10 years’ time, your property will have appreciated significantly if you buy a good quality home in a good quality location.

Secondly, you will need to implement a strategy! Here are some quick tips:

• See new listings first. Register your details on agency databases. Figure out who the key selling agents are in the area and do a ring around. Registering for email alerts on domain.com.au and realestate.com.au isn’t enough nowadays. Agencies usually email and/or call their database clients before putting new listings online. Many also hold database-only inspections before going to market. This is a very important advantage for you, as you will have first opportunity to buy.
• Don’t wait around for someone else to buy the property. Make offers on properties – even if they are going to auction. Vendors are often tempted to sell prior so ask the agent if they are open to it. If they are – then put your best foot forward with a good strong offer.
• Show you’re serious. When making an offer, sign the contract and attach a cheque for the deposit. This makes your offer a lot more seductive to the vendor. Alternatively, put your offer in writing and confirm you have your finance approved.

When will we see more stock? I think if there’s a more modest growth pattern going forward, this will entice more people back onto the market. And of course there is Spring just around the corner which always seems to attract more sellers. Whilst this will make buying conditions better it may soften selling conditions. So if you are weighing up selling now or waiting, my advice would be to take action now! For advice on how to take advantage of these perfect selling conditions phone us today on 0424 006 855 or email timcullen@mcgrath.com.au