PK's Sydney Property Market Update October 2022
Spring Has Not Sprung Yet
Well, we have now entered the second month of spring and agents Sydney wide are reporting that the stock levels are 50% lower than what is normally expected for Spring, and could stay that way till the end of the year.
Here are 8 reasons why I think people are not selling at this present time:
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Sellers are sitting on the fence to see what interest rates will eventually peak at, and then workout how much they can really borrow.
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Sellers are looking over the fence to see what their neighbours might achieve when they sell, before spending all that money on marketing.
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People have already transacted over the last three years and therefore the only people that are selling are divorced, downsizers, deaths, and foreclosures. The normal trading aspirational market is also not coming into play at present, therefore listings are down substantially.
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The market becomes what I call a Mexican standoff, where the seller says to the agent “I would love to sell, but I just can't find anything to buy at present”.
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People have just decided not to move because they just can't justify the price they are getting for their home, which means they won't be able to afford their dream home.
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People are trying to pick the bottom of the market before they buy, which can be a dangerous move.
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A lot of people are worried about the local economy, the world economy, their future and security of their job.
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It's been a long, cold, wet winter where covid was still present, and the flu came back twice as strong. People also have not been on holidays for a long time, so are taking the opportunity to do so. It also takes a lot of work to get a property prepared for sale and trades people are not readily available and very expensive at present.
There are probably a whole lot more excuses, but the fact of the matter is, agents are working hard to get everything rolling after the school holidays, and we will see some more properties come online for sale, but not a whole lot more.
PK's Property Market Predictions
Stock is going to be tight until the end of the year, and the A grade and strong B grade stock, has plateaued in price, whereas the soft B and C grade stock will drop a little more before Christmas.
PK's Hot Property Tips
A lot of property is off market at present, more than I have seen for a very long time. A PK Buyer's Agent and dedicated search team hunting off market properties 6 days a week, will widen your net in this tight stock market. Remember, in this turbulent marketplace, a PK Buyer's Agent is not a luxury, it's a necessity. You need independent, professional advice to work out what is the real price, and then the strategy to get the best price.