PK's Sydney Property Market Update November 2022
WHAT WILL BE WILL BE
Well, the year is coming to an end quickly and it looks like most vendors are waking up and smelling the coffee regarding meeting the market.
In saying that, there is still a number of vendors that have their head in 2021 prices, and they are the ones that will have their properties sitting on the market for months and months.
As interest rates continue to rise, property prices continue to fall on soft B and C grade properties, but it looks like the A grade and strong B grade properties are holding their own.
Stock levels are the worst I have seen in 25 years as a lot of vendors are just sitting on the fence waiting to see what interest rates do. Once they do stop, I believe you have probably missed the bottom of the market. You will never pick the bottom of the market, and I always say to buyers, you are most likely to be in the property for 10 years or longer, so in the grand scheme of things, if you see something you like just buy it, but make sure it's a fair price.
I think one of the main reasons auction clearance rates are above 60% is because vendors are meeting the market, and also buyers that have got loans approved are wanting to close a deal before they get re rated. Each time that interest rate goes up at present, the banks are asking their clients to come back and see if their pre-approval is still valid, which is throwing a spanner in the works for agents.
PK'S Sydney property market predictions
I think 2022 has been a real post covid year, with not a lot of sunshine, too much rain, and a bad flu circulating.
I know I am sounding pretty dismal here, but it has stopped a lot of people even thinking about selling, with tradesmen hard to get and all the above. I think there is quite a few people that have also planned an overseas holiday this year, and that seems to have taken the focus off buying and selling. Not to mention rising interest rates, and goods and services, I think everyone has put their moving plans on hold till 2023.
PK'S Hot Property tips
I think it is really important that when you are negotiating at the moment, you are patient and probably don't jump on properties in the first week.
Just enable the campaign to have some length, and then jump in when the time is right starting at a low figure and then work your way up.
Most importantly find out what the motivation of the vendor is, are they sellers at any price, or are they holding out till next year to see if things improve.
Vendor motivation is key at present, so make sure you are filled in from day one or you could be wasting a lot of time.
Please call me today for a confidential chat in regards to what a property is really worth in this turbulent marketplace. My mobile is 0419200018.
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