The classic song by The Rolling Stones, ‘you can’t always get what you want’, is the plaintive cry of many sellers and the edict of buyers in today’s market.
There is a huge amount of chatter about the current state of the real estate market, such as the woeful perfomance of residential house auctions. Read, where are prices heading, why hasn’t my home sold and should I put my home on the market?
Indicators suggest the price ball continues to roll downhill albeit slowly, but without a clear sign of when it may stop.
Anecdotal and empirical evidence by many agents, indicate about a 20% fall in prices from the peak of the market in late 2010 to now, as a ‘wave of the hand’ but reasonable assumption.
My top 10 comments on the state of play:
1. The Reserve Bank is likely to reduce interest rates. This is not a ringing endorsement of the economy, they do so to alleviate pressure and to stimulate endeavour. Don’t forget about the weight of Europe, USA and ‘cross fingers’ for China.
2. As current home sellers finally realize things will not change in the near future, prices are adjusted downwards to attract buyers, which in turn increases pressure on lowering prices of homes that are coming to the market.
3. If your home is not getting enquiry from buyers, it is overpriced. If it is attracting buyer enquiry but no inspections, it is overpriced and if it is attracting buyers but no offers, it is still overpriced, regardless of friends and family saying THEY wouldn’t sell it under $….(Let them buy it!Also assumes your agent is competent!)
4. Less buyers, more homes unsold and more coming onto the market, allows buyers (who these days have an unfettered amount of information available to them) to be very choosy and feel they have the power.
5. Buying and selling in the same market equates to equilibrium, although read 6.
6. Trading up in a retreating market is perfect as the price ‘gap’ is improved. If you have been in your home for many years, you will have probably made a considerable profit.
7. If you are selling then renting and putting your money in the bank…good for you and probably pretty smart, but it doesn’t help fellow sellers or your beloved real estate agent!
8. There is wide agreement home affordability remains too high and the Reserve Bank is likely to have a finger hovering over the increase interest rate button if prices suddenly take off. (No it’s NOT going to happen.)
9. Having real estate agents tax you. Err, I mean charge you for advertising that is ineffective so as to profile their agency under the guise of finding the buyer is usually as effective as buying a tatt’s ticket.
10. The circle of life in real estate continues unabated. People get old and move. Young people buy their first home. People trade up and down. People die, get divorced, change their lifestyle, move overseas or interstate and return. People win money and lose it. Investors are a constant. In other words, life continues on and there will always be buyers and sellers, just at different prices.
What to do? What to do?
Unless you have the gift of knowing the future, then…
If you have a reason to sell your home at the moment, go for it! Your mantra should be sooner rather than later, as your likely to receive less later.
Home ownership is as much about emotional comfort as it is financial security, so buy and live in a home you love, in an area you want to be, for the reasons you want to be there, life is fragile and short, enjoy it in your own slice of heaven!
So, sell your home but…
If your home has been on the market for a while and believe you have a good agent… reduce the price!
If your home has been on the market for a while and believe you don’t have a good agent… change the agent!
If you are about to sell, get an excellent agent who can negotiate and prove it! One who has credibility, you feel trust and communicates with you regardless of whether you like the feedback. Not…a hack or an order-taker.
CHOOSE your agent on their qualities and value, not on the price they quote and the fees they charge. Remember price is what you pay, value is what you get.
For how long will the bugle of retreat sound? Who knows, but the money men believe some years……then flat for some years…..only hindsight will tell.
Why put your life on hold because the price of a house changes?
