The media likes to hype up and sensationalise what's happening in the property market, but it also talks about the property market as a whole – which in reality isn't the case – but it helps to sell their stories. There are many segments of the market that all work in tandem, with different patterns happening or “spot firing” as I like to call it. This can be seen when reading Domain's article “Eastern Suburbs the auction standout as agents warn of a fickle market” where they highlight that only 25 percent of Sydney properties are selling at auction. What they don't mention is the 75% that sell prior or post auction – but that's a story for another day. So should you really be concerned about the market plummeting? If you're looking on the North Shore, Northern Beaches, Eastern Surburbs and Inner West, the answer is no.
What we're seeing at the moment is the property market in these areas “normalising”. This means that it has come off by about 5-10%. The current market means that A grade properties (ie. Those move straight-in properties with good aspects, characteristics and location) sell for A grade prices and have only come off about 1-2%, whereas, the B and C grade properties sell according to what they are really worth and have come off about 5-10%.This has not been the case for the past 2 years since the surge in prices in 2015 – where the B and C grade properties have been performing above average leveraging off the high sale prices for A grade properties. More stock on the market has been a contributing factor to the change in the market, giving buyers more choice, and where there are A, B and C grade properties available, the Bs and Cs are suffering.
We are also currently seeing vendors of the B & C grade properties being reluctant to be realistic about what's happening in the current market (instead choosing to keep their head in the sand and pretend it's the market of 3, 6 or 12 months ago when comparing their home). This leads to price guides being pushed up for these properties, and then agents are having to do price reductions based on what the market is telling them throughout the open home period. Meanwhile, the A grade properties are being quoted below or at their market worth with a “price guide”. So how do you know what you should really be spending on a property?
It has become more important than ever to have someone on your side who can cut through the confusion and make sure you know which properties to buy and importantly, which ones not to buy. With our 20 years of negotiation experience, my team here at PK Property Buyer's Agents can handle this confidently for you. There will be bargains to pick up in the lead-up to Christmas, but this may not last into 2018, so I'd suggest you act quickly. In addition, given our years of connections with real estate agents, we can ensure you're seeing 100% of what's truly on the market (including introducing you to many off-market/silent sales that you would never find).
If you need help searching for, evaluating or negotiating property, call me today for a confidential discussion on (+61) 2 99601066 or +61 419 200 018 or enquire today for more information about how PK Property Search & Negotiators can secure your next home for the lowest possible purchase price. Also don't forget to check out our 2 minute video tutorials on our PK TV page and/or subscribe to my Monthly Market Update for my thoughts and comments about what's happening in Sydney's property market, tips and tricks to use and much more!