Property oversupply to turn around from election day
March 10th, 2016 by Geoff Baldwin
Property oversupply to turn around from election day ….. Currently there are over 20,000 properties for sale across Perth presenting great opportunities and a wide choice for buyers however this glut is part of the normal cycle and it will begin to tighten once the Federal election has come and gone industry veteran and Managing Director of RE/MAX WA, Geoff Baldwin has predicted.
“In a market where there are a lot of properties on offer buyers are definitely in the driver’s seat however, regardless of the wider choice, there are only a limited number of bargains and even less that will fit a particular buyers requirements.
“The trap in this market is that buyers think the well priced properties will still be there tomorrow and next week and hence they hold off however, in any market the best properties are the ones that sell and they sell quickly regardless of market conditions.
“We are now seeing buyers contacting us to place offers on properties they viewed several weeks ago only to be informed that they have missed out because the properties has sold often resulting in significant disappointment.
“We are also seeing upgraders who have made offers that are subject to their current homes selling but who are missing out because they are holding out for an unachievable price despite negotiating a great deal on the new home.
“Sellers are advised to remember that
the most often question asked by an interested buyer is “How long has it been on the market” and the reason they ask this question is that the longer it’s been for sale the less they are likely to offer.
“Stale listings will inevitably sell well below what they would have sold for if they came to the market at the right price on day one.
“A property that comes onto the market today at a very realistic price will still attract huge interest and competition between buyers which results in the price being maximised.
regards to the current oversupply, buyers are now re-entering the market and we are also seeing more and more investors recognising the value around at the moment and this increasing activity tends to have a snowball effect.
“Once people see Under Offer and Sold stickers appearing on signs they tend to move a lot more quickly and historically this has resulted in a quick reduction in stock and more pressure on prices.
“It is inarguably a wonderful time for people to buy however people thinking of buying or upgrading should do so in the short term rather than believing these conditions will last forever, Baldwin said.