Market will be strong right up until Christmas
Unfortunately it has been very disappointing in regards to stock levels in all types of property up to $4 million. What we are seeing is a Mexican standoff which I have experienced many times before after running PK Property for 18 years now.
Basically people will not put their property on the market in fear of not finding something else, and then risk being stuck in the rental market, when property prices are moving upwards.
I do see this loosening up come first week of October, but please remember there is a huge amount of aggressive buyers that have backed up over winter eager to get settled before Christmas, on top of a whole lot of new spring buyers. This will mean spring stock will get snapped up real quick.
Even though auction clearance rates have come down from 85 percent to 75 percent you still have to realise that's overall in the Sydney market place.
If you broke down certain segments in the market place to categories and price ranges, and then gave an auction clearance rate to that specific item you could end up with some of them at 50 percent and some at 95 to 100 percent.
A good example at present is the $2 to $4 million range for a good family home in Mosman with a flat backyard and good spacious accommodation .
This product has now been so hard to come by for two years now, and there is a huge line of buyers just waiting to snap these up. Therefore if you just did an auction clearance rate on these over the next 6 months it would probably be 100 percent clearance rate, and the capital growth might be 10 percent over the next 12 months instead of five percent.
The only thing that is really going to slow this property market down is a heap of stock coming to the market, high interest rates, a dramatic rise in unemployment or another GFC.
PK's Property Market Predictions
I see the market running red hot till Christmas especially in the price brackets $750,000 to $4 million in both houses and units.
If we get an incredible influx of new stock on the market, the competitive edge will come off the auction market but I can't see this happening anytime too soon.
PK's Hot Tip
If you are coming second at every auction, finding you have not got the time to play the underquoting game, have not got time to search for property and want to get settled before Christmas please call one of our buyers agents today on 99601066.
Also don't forget PK's 2 min video tutorials on youtube showing you hot tips and negotiating tricks of the trade.